Agency theory can best be described as:

Question

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Agency theory is concerned with the relationship between different parties involved in a company, including top management, the board of directors, and shareholders. It examines how conflicts of interest can arise between these parties and how they can be managed to ensure that the interests of the company are always protected. This theory is particularly relevant in cases where management may act in their own self-interest at the expense of shareholders, for example.

Agency Theory Can Best Be Described As