The principal-agent problem of ownership vs. control of the corporation arises when owners and managers:
A) are the same people.
B) pursue objectives that differ from those their customers wish them to pursue.
C) pursue objectives that differ from those their workers wish them to pursue.
D) pursue objectives that differ from those the government wishes them to pursue.
E) pursue different objectives.

Question

Quizplus · Accepted Answer

The principal-agent problem of ownership vs. control arises when owners (the principals) and managers (the agents) have different objectives or interests. This can lead to a conflict of interest and a potential lack of accountability on the part of the managers, who may prioritize their own goals over those of the owners.

The Principal-Agent Problem of Ownership Vs