The Conflict in a Principal-Agent Relationship Arises When

question 68

Multiple Choice

The conflict in a principal-agent relationship arises when

• A) the company has more outside directors than inside directors.
• B) the strategy adopted by the company's agents tries to emulate the mission statement created by the principals.
• C) stockholders and agents are involved in the day-to-day operations of the company.
• D) the goals of the principals and agents are not aligned with each other.

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