Question: The Principal - Agent Problem arises:Question 8 AnswerA.because agents do not understand their contracts.B . because managers have more incentive to work in the interest

The Principal-Agent Problem arises:Question 8 AnswerA.because agents do not understand their contracts.B.because managers have more incentive to work in the interest of shareholders when this means working against their own self-interest.C.because managers typically own large fractions of the shares of the company.D.because of the separation of ownership and control in a corporation.E.because managers are afraid of hostile takeovers.

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