The agency problem exists primarily in companies of which:
A)ownership is widely dispersed.
B)common stock is closely held.
C)management has stock ownership.
D)Both a & c

Question

Quizplus · Accepted Answer

The agency problem arises when there is a separation between ownership and control, which is common in companies with widely dispersed ownership, leading to potential conflicts between management and shareholders.

The Agency Problem Exists Primarily in Companies of Which