Agency problems exist in which forms of business ownership?
A)Sole proprietorship
B)S corporation
C)Partnership
D)Corporation

Question

Quizplus · Accepted Answer

Agency problems exist in all forms of business ownership, but they are most prominent in corporations due to the separation between ownership and management. Shareholders, who are the owners, elect a board of directors to represent their interests and oversee the company's management. This separation can create conflicts of interest, leading to agency problems such as principal-agent conflicts or managerial opportunism.

Agency Problems Exist in Which Forms of Business Ownership