How Can Using Indirect Finance Rather Than Direct Finance Reduce

question 4

Essay

How can using indirect finance rather than direct finance reduce agency costs associated with monitoring funds demanders?

---

Definitions:

Adult Attachment

A framework within psychology that describes patterns of emotional bonds in adults, often mirroring those formed in infancy with primary caregivers.

Cathartic Release

The process of releasing or expressing pent-up emotions, which is believed to lead to psychological relief.

Active-role

Involvement or participation in activities or situations where one has influence or control over the outcome.

Avoidant Coping Strategies

Methods of dealing with stress by avoiding the stressor altogether, which can include denial, distraction, or withdrawal.