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What Is the Dark Side of Principal-Agent Relationships

Question 41

Multiple Choice

What is the dark side of principal-agent relationships?


A) Agents are often not rational.
B) Institutions sometimes force principal-agent relationships underground.
C) Principals often force agents to do things against their will.
D) The interests of the agent and the principal may not be well aligned.
E) The principals usually do not know what they are doing.

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