A large part of the principal-agent problem stems from the desire of
A) agents to work hard.
B) agents to avoid working.
C) principals to work hard.
D) principals to avoid working.

Question

Quizplus · Accepted Answer

The principal-agent problem arises when agents (employees) have an incentive to shirk responsibilities or avoid working hard, which may conflict with the interests of principals (employers) who want them to work diligently.

A Large Part of the Principal-Agent Problem Stems from the Desire