Question: The agency problem arises when Question 7 5 Answer a . managers act in their own interest, rather than in the interest of shareholders. b

The "agency problem" arises when
Question 75 Answer
a.
managers act in their own interest, rather than in the interest of shareholders.
b.
shareholders act in their own interest, rather than in the interest of the board.
c.
business owners manage the company on their own behalf.
d.
there is no separation of ownership and control in a company.

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