A principal agent problem could potential arise from which of the following relationship? a) A manager...

A principal agent problem could potential arise from which of the following relationship?

a) A manager acts on behalf of the shareholders.

b) A fund manager make investment decisions for his/her clients.

c) A bank lends to its clients.

d) A trader works for an investment bank.

1	a, b, c, d
2		a, b, c
3		a, b
4		b

Expert Solution

3) a,b

Explanation: The principal-agent problem is a conflict in priorities between the owner of an asset and the person to whom control of the asset has been delegated. In option C and D , there is no ownership of property. So, there won't be any principal agent conflict.

jeff jeffy answered 2 years ago

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