Which one of the following options best describes the principal- agent problem?
A) When there is a breakdown of communication between shareholders and brokers.
B) When stockbrokers fail to collect principal payments on a financial security on behalf of the owner.
C) When brokers ask for additional payments to carry out a transaction.
D) When the shareholders have to incur the expense of ensuring that managers act in the interest of the shareholders.
Correct Answer:
Verified
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