____ arise from the divergent objectives between owners and managers.
A) Shareholder relationships
B) Stakeholder problems
C) Creditor problems
D) Agency problems

Question

Quizplus · Accepted Answer

Agency problems arise from the divergent objectives between owners (shareholders) and managers. Shareholders want to maximize their wealth, while managers may have different motives, such as maximizing their own wealth or power. This can lead to conflicts of interest and potential actions that benefit managers at the expense of shareholders.

____ Arise from the Divergent Objectives Between Owners and Managers