The mutual form of ownership accentuates the principal-agent problem that exists in corporations.

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The mutual form of ownership, where policyholders collectively own an insurance company, creates a principal-agent problem as the policyholders rely on the company's management to make sound financial decisions on their behalf. However, the management may prioritize their own interests over those of the policyholders. Therefore, the mutual form of ownership accentuates the principal-agent problem that already exists in corporations.

The Mutual Form of Ownership Accentuates the Principal-Agent Problem That