Question: The agency problem arises when: Multiple Choice Owners manage the company on their own behalf. There is no separation of ownership and control in a

The "agency problem" arises when:

Multiple Choice

  • Owners manage the company on their own behalf.

  • There is no separation of ownership and control in a company.

  • Managers act in their own interest, rather than in the interest of shareholders.

  • Shareholders act in their own interest, rather than in the interest of the board.

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