Question: Question 1 a. Describe the principal-agent relationship. In your answer, give an example of how a principal-agent problem arises in the corporate world. Can such

Question 1 a. Describe the principal-agent relationship. In your answer, give an example of how a principal-agent problem arises in the corporate world. Can such a problem become costly? (5 marks) b. Explain the three main areas of the balance sheet. (6 marks) c. A two-year investment of $200 is made today at an annual interest rate of 6%. What is its value (i) today and (ii) two years from today

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