In applying agency theory to problems of corporate management,the principals are the

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In agency theory, the principals are the stockholders who hire the agents (the CEO and top management team) to manage the company on their behalf. The goal of agency theory is to align the interests of the principals (maximizing shareholder value) with those of the agents (maximizing their own interests). Therefore, the most appropriate choice is E, stockholders.

In Applying Agency Theory to Problems of Corporate Management,the Principals