The principal-agent problem can be best described as
A) owners and managers having different interests.
B) owners and managers not being able to work together productively.
C) managers not being accountable to owners.
D) owners not treating managers with respect.

Question

Quizplus · Accepted Answer

The principal-agent problem arises when the principals (owners) and the agents (managers) have different interests, leading to potential conflicts as managers might not always act in the best interest of the owners.

The Principal-Agent Problem Can Be Best Described as