Asked by
Clutch Master ReyRey
on Nov 08, 2024
Verified
The possibility of conflict of interest between the stockholders and management of the firm is called:
A) The shareholders' conundrum.
B) Corporate breakdown.
C) The agency problem.
D) Corporate activism.
E) Legal liability.
Agency Problem
A conflict of interest arising between principals (owners/shareholders) and agents (company executives/managers), where the agent may make decisions that benefit themselves at the expense of the principals.
- Understand the principle and consequences of corporate governance.
Verified Answer
AO
Learning Objectives
- Understand the principle and consequences of corporate governance.
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