The minimization of principal-agent conflicts through concentration of ownership and control,unfortunately,introduces more principal-principal conflicts.

Question

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When ownership and control are concentrated in the same hands, the principal-agent conflicts are reduced because the owners themselves run the business, eliminating the need for an agent. However, this concentration of power can lead to principal-principal conflicts between different shareholders, board members, or other stakeholders who may have different interests, goals, and views on how the company should be managed.

The Minimization of Principal-Agent Conflicts Through Concentration of Ownership and Control,unfortunately,introduces