Strategic control systems are the primary governance mechanisms established within a company to reduce the scope of the agency problem between levels of management.

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Strategic control systems are specifically designed to monitor and evaluate a company's strategic performance and ensure that its operations are aligned with its long-term objectives. By reducing the scope of the agency problem between levels of management, these systems help to ensure that managers operate in the best interests of the company as a whole rather than pursuing their own goals at the expense of other stakeholders. As such, they are a critical component of effective corporate governance.

Strategic Control Systems Are the Primary Governance Mechanisms Established Within