The Principal-Agent Problem, as Applied to the Management of a Company

question 216

Multiple Choice

The principal-agent problem, as applied to the management of a company, would have the

• A) stockholders as the agents and the managers as the principals.
• B) company as the principal and the customer as the agent.
• C) stockholders as the principals and the managers as the agents.
• D) customer as the principal and the company as the agent.