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Separation of Ownership from Control Clearly Expands the Potential for Principal/agent

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Essay

Separation of ownership from control clearly expands the potential for principal/agent conflict.Why don't large corporations fail in large numbers because of this conflict?


Definitions:

Private Market-clearing

The process by which supply and demand balance out at a price where the quantity supplied equals the quantity demanded in a private marketplace, without excess surplus or shortage.

Emissions Taxes

Taxes levied on the emission of pollutants, aimed at reducing environmental harm by incorporating the cost of pollution into the market price.

Tradable Emissions Permits

A regulatory system that allows companies to buy or sell allowances for a given amount of emissions, encouraging reduction in total emissions in a cost-effective manner.

Environmental Standards

Regulations and criteria set by authorities regarding the levels of pollutants that can be present in the environment or released over a certain time frame.

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