Skip to content
What is agency problem?
- Agency problems arise when one party (principal) engages another party (agent) to perform actions on their behalf
- Agents may not always act in best interest of principal
- A firm is an example where an agency problem arises because of the separation of ownership and control
- Managers/agents may not always act in the best interests of shareholders/principals
Having issues with your finance module? SMS us at +65 9758-7925 or email: enquiry@starcresto.com