The Principal-Agent Problem Refers to the Fact That the Agent's

question 17

Multiple Choice

The principal-agent problem refers to the fact that the agent's goals

• A)do not always coincide with those of the principal.
• B)do not overlap with those of the principal.
• C)coincide with those of the principal.
• D)overlap with those of the principal.

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Definitions:

Notice

Formal information or warning about something given to a person or group.

Facts

Objective realities or pieces of information that are proven to be true through evidence.

Circumstances

Conditions or facts affecting a situation, event, or action, which may influence its outcome or the decisions made regarding it.

Assignment

A transfer of rights, property, or responsibilities from one party to another.