Principal-agent problems do NOT arise between:
A) stockholders and managers.
B) managers and workers.
C) stockholders and workers.
D) workers and consumers.

Question

Quizplus · Accepted Answer

Principal-agent problems typically arise when one party (the agent) is expected to act in the best interest of another party (the principal), but there is a conflict of interest. Workers and consumers do not have this type of relationship, as consumers are not principals who delegate authority to workers.

Principal-Agent Problems Do NOT Arise Between