The ____________ refers to the potential conflict between management and shareholders.
A) agency problem
B) diversification problem
C) liquidity problem
D) solvency problem
E) regulatory problem

Question

Quizplus · Accepted Answer

The agency problem arises due to the potential conflict of interest between the management of a company (agents) and its shareholders (principals). The management may pursue personal benefits over the interests of the shareholders.

The ____________ Refers to the Potential Conflict Between Management and Shareholders