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RoseWind [281]
3 years ago
15

The problem of preventing managers from acting in their own best interests and instead acting in the best interests of the stock

holders is the _______?
Question 16 options:

a. Agency Problem

b. Business environment problem

c. Stockholder problem

d. Principle Problem
Business
1 answer:
Mumz [18]3 years ago
5 0

Answer:

The correct answer is letter "A": Agency Problem.

Explanation:

An Agency Problem occurs when a conflict of interest arises for an agent, a person acting on behalf of another person. The conflict of interest arises when the agent's own interests are different from those of the principal or the person being acted for. In the corporate world, the <em>Chief Executive Officer</em> (CEO) is an agent acting for the owners of the company: the <em>stockholders</em>.

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