GLD Inc.is a publicly traded company.The stockholders of this company delegate the authority to make decisions for the company to a CEO named George.The stockholders expect George to make decisions that will benefit the company.However,George begins to find ways to maximize his total compensation,which at times hinders GLD's performance.This scenario reflects

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This scenario reflects principal-agent problems. This problem can arise whenever principals delegate decision making and control over resources to agents, with the expectation that they will act in the principals' best interest. The conflict arises if the agents pursue their own personal interests, which can be at odds with the principals' goals.

GLD IncIs a Publicly Traded Company