The conflicts between controlling shareholders and minority shareholders are called _____.

Question

Quizplus · Accepted Answer

The conflicts between controlling shareholders and minority shareholders are called principal-principal conflicts. This is because both parties can technically be considered principals (i.e. owners) of the company, but they have differing interests and control over the direction of the company. Owner-manager conflicts (A) refer to conflicts between the owner(s) of a business and the hired manager(s). Agent-agent conflicts (B) refer to conflicts between two or more agents (e.g. managers) within a company. Principal-agent conflicts (C) refer to conflicts between the owner/principal and the hired agent/manager.

The Conflicts Between Controlling Shareholders and Minority Shareholders Are Called