What do we call the possible conflict of interests between shareholders and management?

Question

Quizplus · Accepted Answer

The possible conflict of interests between shareholders and management is referred to as an Agency problem. This arises due to the separation of ownership and control in the company. Shareholders entrust their investments to the management who is responsible for making decisions in the best interest of the company. However, sometimes, the management may prioritize their personal gains or interests, leading to a conflict with the shareholders. Therefore, it is important to establish proper mechanisms that align the interests of both parties and ensure effective corporate governance.

What Do We Call the Possible Conflict of Interests Between