Which form of business structure faces the greatest agency problems?
A) Sole proprietorship.
B) General partnership.
C) Limited partnership.
D) Corporation.
E) Limited liability company.

Question

Quizplus · Accepted Answer

Corporations face the greatest agency problems due to the separation of ownership and management. Shareholders (owners) often have little control over the managers (agents) who make decisions on their behalf, leading to potential conflicts of interest.

Which Form of Business Structure Faces the Greatest Agency Problems