Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. explain in details the agency problem?

Explain in details the agency problem?

80.2K

Verified Solution

Question

Finance

Explain in details the agency problem?

Answer & Explanation Solved by verified expert
3.9 Ratings (779 Votes)
The Agency relationship arises when a principal hires an agent to represent their interestStockholders principals hire managers agents to run a companyThe agency problem is defined by a situation in which there is a conflict of interest between a principal and agentAgency cost is simply the cost of the conflict of interest For    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Explain in details the agency problem?

Other questions asked by students

Calculus
1.2K views

Write the equations in cylindrical coordinates.(a) 3x - 9x + 3y + z = 7(b)...

Finance
1.2K views

What are some of the most important risks associated with bonds?

Accounting
1.2K views

Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company...

Psychology
1.2K views

Name and describe at least two sociocultural factors that shape the transition from childhood to adulthood....

Biology
1.2K views

We studied the apple and hawthorn maggot flies as an example of speciation Flies of...

Biology
1.2K views

Which of these can give you exposure to mutagens? Mark all correct answers. sunbathing or...

Physics
1.2K views

State the representation with no spaces between numbers A Question 8 1 point What is...

Geometry
1.2K views

Listen Why can lines not be congruent Because they equal 0 Because they are different...

Geometry
1.2K views

In Exercises 15 to 18 construct angles having the given measures 15 90 and then...

Geometry
1.2K views

ENGAGE Simplifying Radical Expressions Complete the following activity with your teacher in order to start...

Calculus
1.2K views

Here are four graphs Which of the following is the graph of an odd function...

Accounting
1.2K views

Question content area top Part 1 The Roti Bread Company bakes...