There will be no principal-agent problem if a firm's owner (like a business consultant)does all the work of the firm.

Name: There will be no principal-agent problem if a firm's owner (like a business consultant)does all the work of the firm.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the firm's owner does all the work, there is no separation between ownership and control, thus eliminating the principal-agent problem which arises from conflicting interests between owners (principals) and managers or employees (agents).

There Will Be No Principal-Agent Problem If a Firm's Owner