The likelihood that managers may place personal goals ahead of corporate goals is called agencyproblem.

Name: The likelihood that managers may place personal goals ahead of corporate goals is called agencyproblem.
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Question

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Agency problem refers to the conflict of interest that arises when the goals of the agent (manager) deviate from the goals of the principal (corporation or shareholders). This can lead to managers prioritizing their personal goals over the corporate goals.

The Likelihood That Managers May Place Personal Goals Ahead of Corporate