Accounting scandals can often be attributed to a particular concept in the study of finance known as the ________.

Question

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Accounting scandals often occur due to conflicts of interest between managers (who may be motivated by personal gain) and shareholders (who may want to maximize profits for the company). This conflict is known as the agency problem, and it can lead to unethical behavior, such as the manipulation of accounting records to make the company appear more profitable than it actually is.

Accounting Scandals Can Often Be Attributed to a Particular Concept