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 agency problem refers to the conflict of interest between the stockholders and managers of a corporation because managers may prioritize their own interests over the interests of the shareholders. This can lead to actions that benefit the managers but harm the company or its shareholders.

Which One of These Terms Refers to a Conflict of Interest