Which one of these terms refers to a conflict of interest between the stockholders and managers of a corporation?
A)Stakeholder claim
B)Corporate activism
C)Legal liability
D)Breach of indemnity
E)Agency problem

Question

Quizplus · Accepted Answer

The term "Agency problem" refers to a conflict of interest between the stockholders (principals) and managers (agents) of a corporation. Managers may prioritize their own interests over those of the shareholders, leading to decisions that do not maximize shareholder value. This is also known as the principal-agent problem.

Which One of These Terms Refers to a Conflict of Interest