An agency problem can arise when the agent of the firm is the sole owner of the firm.

Name: An agency problem can arise when the agent of the firm is the sole owner of the firm.
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Quizplus · Accepted Answer

An agency problem typically arises when there is a separation between ownership and control, such as when managers (agents) run a company on behalf of shareholders (principals). If the agent is the sole owner, their interests are aligned with the firm's, eliminating the agency problem.

An Agency Problem Can Arise When the Agent of the Firm