In which form of business organization is a agency problem most likely to occur?

Question

Quizplus · Accepted Answer

A corporation is the most complex and structured form of business organization. It involves the separation of ownership and control, which creates an agency problem. Shareholders entrust their management to a board of directors, but these managers may not always act in shareholders' best interests. This separation can result in conflicts of interest between shareholders and managers.

In Which Form of Business Organization Is a Agency Problem