The possibility that the managers of a corporation might not always act in the best interest of its owners is an example of the principal-agent problem.

Name: The possibility that the managers of a corporation might not always act in the best interest of its owners is an example of the principal-agent problem.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

The principal-agent problem arises when agents (managers) have different interests than principals (owners) and may not act in the owners' best interests.

The Possibility That the Managers of a Corporation Might Not