The Agent Problem arises: A. Because of the separation of ownership and control in a corporation...

The Agent Problem arises:

	A.	Because of the separation of ownership and control in a corporation
	B.	Because managers have little incentive to work in the interest of shareholders when this means working against their own interests
	C.	Both A and B
	D.	None of the above

Solutions

Expert Solution

The correct answer is the third option i.e. option C. Both A & B

Both the reasons stated in the question are the reasons behind the agency problem.

jeff jeffy answered 2 years ago

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