Question: The principal - agent problem ( agency problem ) arises when: Managers act in their own interest rether than in the interest of shareholders.
The "principalagent problem agency problem arises when:
Managers act in their own interest rether than in the interest of shareholders.
Owners manage the compary on their own behalf.
There is no information asymmetry between proncipal and apent.
There is no separation of ownership and conerol in a company.
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