The principal-agent problem can occur when the person who manages a firm is not the owner of the firm.

Name: The principal-agent problem can occur when the person who manages a firm is not the owner of the firm.
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Question

Quizplus · Accepted Answer

The principal-agent problem arises when there is a conflict of interest between the owner of the firm (the principal) and the manager (the agent), especially when the manager's actions are not fully observable or alignable with the owner's interests.

The Principal-Agent Problem Can Occur When the Person Who Manages