Question: What is the difference between ownership and control? Why do differences between the two matter? (4 marks) ii. Suppose you are considering renting an apartment.

What is the difference between ownership and control? Why do differences between the two matter? (4 marks) ii. Suppose you are considering renting an apartment. You, the renter, can be viewed as an agent while the company that owns the apartment can be viewed as the principal. What principal-agent conflicts do you anticipate? (3 Marks) iii. Suppose, instead, that you work for the apartment company. What features would you put into the lease agreement that would give the renter incentives to take good care of the apartment? (3 Marks)

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