What Is the Principal-Agent Problem as Applied to Corporations

question 94

Essay

What is the principal-agent problem as applied to corporations?

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Definitions:

Stakeholders

Individuals or groups affected by or having an interest in the operations and decisions of a business or project.

USMCA

The United States-Mexico-Canada Agreement, a free trade deal replacing NAFTA to facilitate fair trade among these North American countries.

NAFTA

The North American Free Trade Agreement (NAFTA) was a treaty entered into by the United States, Canada, and Mexico; it was designed to eliminate most tariffs on trade between these nations.

Trade Agreement

An agreement between two or more nations regarding the conditions of trade between them, often involving tariff reductions or other trade barriers.