Question: The principal - agent problem ( agency problem ) arises when: There is no information asymmetry between principal and agent. Owners manage the company
The "principalagent problem agency problem arises when:
There is no information asymmetry between principal and agent.
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.
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