Principal-agent problems can exist between:
A) workers and managers.
B) workers and owners.
C) workers and customers.
D) owners and customers.
E) all the above.

Question

Quizplus · Accepted Answer

Principal-agent problems can exist between any two parties where one party (the agent) is acting on behalf of another party (the principal) and has the potential to make decisions that affect the principal's welfare. In the context of a business, this can occur between workers and managers, workers and owners, and owners and customers.

Principal-Agent Problems Can Exist Between