The conflict between principals and agents arises because:
A)agents often do not know the extent of their authority.
B)agents act without specific authority form their principals.
C)agents prefer actions that will increase their own welfare instead of the welfare of their principals.
D)principals are not willing to give agents the authority that the need to protect the welfare of their principals.

Question

Quizplus · Accepted Answer

The conflict between principals and agents arises because agents tend to prioritize their own interests over those of their principals. This is referred to as the agency problem, which can lead to a divergence in goals between the principal and agent. The other options do not accurately describe the root cause of the conflict between principals and agents.

The Conflict Between Principals and Agents Arises Because