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Top Managers
Senior executives responsible for making strategic decisions and overseeing the overall operations of an organization.
Asymmetric Information
A situation in which one party in a transaction has more or significantly better information than the other, leading to an imbalance in the transaction.
Moral-Hazard
A situation where one party is more likely to take risks because the consequences of those risks will be felt by another party.
Principal-Agent Problem
A dilemma arising from a conflict of interest between a principal (someone who entrusts a task) and an agent (the one performing the task), where the agent may not act in the best interest of the principal.
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