The problem of motivating one party to act in the best interest of another party is known as the ________.
A)leadership directive
B)management priority
C)principal-agent problem
D)sigma six structure

Question

Quizplus · Accepted Answer

The principal-agent problem arises when the interests of the principal (such as a company owner or shareholder) differ from those of the agent (such as an employee or manager) who is acting on their behalf. It can be difficult to ensure that the agent acts in the best interests of the principal, and this issue is often studied in the fields of economics and management. The other answer choices are not relevant to this concept.

The Problem of Motivating One Party to Act in the Best