2 years ago

One way to overcome the principal-agent problem is to ______.

SAT

1 answer:

Ilya [14]2 years ago

4 0

One way to overcome the principal-agent problem is to make managers owners through stock options.

<h3>Who is principal-agent?</h3>

A principal agent are chosen to act on behalf.

They can act on behalf of the managers of fund by seeking their best interest.

When managers becomes stock owner it's helps to better manage the funds.

Therefore,

One way to overcome the principal-agent problem is to make managers owners through stock options.

Learn more on managers below

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