Normally,the principal-agent problem

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The principal-agent problem is most commonly associated with publicly traded companies where shareholders (principals) hire executives (agents) to manage the company's operations. The agents may prioritize their own interests over those of the principals, leading to a conflict of interest. While this problem can also occur in privately held companies and sole proprietorships, it is not as severe as in publicly traded companies due to the larger number of stakeholders and the greater separation of ownership and management.

Normally,the Principal-Agent Problem