The Agency Problem involves ___ trying to influence _ to run the company in its day-to-day...

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Question

The Agency Problem involves ___ trying to influence _ to run the company in its day-to-day...

The Agency Problem involves ___________ trying to influence _________ to run the company in its day-to-day operations based on what is best for _______.

Group of answer choices

managers; board members; managers

board members; shareholders; board members

shareholders; managers; managers

shareholders; managers; shareholders

business finance

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Answer 1

Answer #1

shareholders; managers; shareholders

Agency problem is caused due to sharehholder and manager conflict. On one hand, manager might try to maximise his/her own wealth although he/she is acting as an agent of shareholders.

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Answer 2

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