The possible conflict between managers and owners is sometimes called the
A)principal-subordinate problem
B)principal-agent problem
C)boss-subordinate problem
D)boss-agent problem
E)none of the above

Question

Quizplus · Accepted Answer

The possible conflict between managers and owners is a classic example of the principal-agent problem, where the owners (principal) delegate decision-making power to the managers (agent) but still want to ensure that their interests are being protected. This can create a conflict of interest between the two parties.

The Possible Conflict Between Managers and Owners Is Sometimes Called