Asked by Sumayyah Bachooa on May 27, 2024
Verified
The agency problem is generally the most prevalent in companies where ownership is held by only a few people.
Agency Problem
A conflict of interest inherent in any relationship where one party is expected to act in another's best interests, such as between shareholders and management.
- Understand the concept of agency problems and potential solutions.
Verified Answer
PS
Patrycja SzymikJun 01, 2024
Final Answer :
False
Explanation :
The agency problem can occur in any company where there is a separation between ownership and control. It is not necessarily more prevalent in companies with few owners.
Learning Objectives
- Understand the concept of agency problems and potential solutions.
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