The separation of ownership and control in large organisations has resulted in:
A) an audit expectation gap
B) an agency problem
C) the insurance hypothesis
D) CLERP

Question

Quizplus · Accepted Answer

The separation of ownership and control in large organizations leads to an agency problem, where the interests of the managers (agents) may not align with those of the owners (principals), potentially causing conflicts and inefficiencies.

The Separation of Ownership and Control in Large Organisations Has