Stockholder and manager conflicts as well as stockholder and debtholder conflicts are associated with the...
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Stockholder and manager conflicts as well as stockholder and debtholder conflicts are associated with the agency relationships between various individuals. An agency relationship exists any time a principal (such as the owner of a firm) gives decision making authority on their behalf to an agent (such as an employee or manager). Note if the employee does not make decisions in the owners best interest there will be problems. In order to attempt to control the employees behavior the
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