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Agency Theory
An economic theory that examines the relationship between principals (owners) and agents (executives), focusing on the conflicts of interest that may arise.
Agents
Individuals or entities authorized to act on behalf of others, in business or legal affairs, to achieve specified goals.
Information
Data processed, organized, or structured in a way that gives it context and relevance, allowing for decision-making.
Principals
The main parties interested or engaged in a certain activity or operation, often used in a legal, educational, or business context.
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