What is the agency problem?

answer
The correct answer is 2. The agency problem describes a situation where there is conflict of interest between management and the shareholders. This is one of the reasons that aligning interests between them is very important.
Part of the course

Try it out

This question is part of our Principles of Finance course.

00:00
00:00

Pick a plan that suits you the best!

Monthly Subscription

$12/month
(billed monthly)

Annual Subscription

$5/month 
(billed annually)

All our plans includes:

  • High quality audio lessons
  • Lesson summaries
  • Interactive questions
  • Learn & Earn
  • Flashcards
  • Lesson transcripts
  • Learning community