The agency problem arises due to the separation of ownership and control in a corporation.

Name: The agency problem arises due to the separation of ownership and control in a corporation.
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The agency problem arises when managers, who act as agents for shareholders, pursue their own interests instead of maximizing shareholder value. This is due to the separation of ownership and control, where shareholders own the company but delegate control to managers who may have different objectives.

The Agency Problem Arises Due to the Separation of Ownership