Examveda

Agency problem is between

A. Manager and Employees

B. Manager and Government

C. Manager and Shareholders

D. Parent to Subsidiary

Answer: Option C

Solution (By Examveda Team)

Agency problem is between manager and shareholders. The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another's best interests. In corporate finance, the agency problem usually refers to a conflict of interest between a company's management and the company's stockholders.

This Question Belongs to Management >> International Finance And Treasury

Join The Discussion

Related Questions on International Finance and Treasury