Question: The Principal-Agent Problem arises: A. because managers have little incentive to work in the interest of shareholders when this means working against their own self-interest.

The Principal-Agent Problem arises:

A. because managers have little incentive to work in the interest of shareholders when this means working against their own self-interest.

B. because of the separation of ownership and control in a corporation.

C. Both A and B

D. None of the above

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