Conflict of interest between owners and agents

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Reference no: EM13811405

Which of the following statements is most accurate regarding agency problems?

a. An agency problem likely occurs when there is a conflict of interest between owners and agents

b. None of the choices are correct

c. An agency problem likely occurs when there is a conflict of interest between two senior managers

d. An example of an agency problem is when managers’ contracts are structured to be related to the price of the company’s stock (i.e. stock options)

e. An example of an agency problem occurs when manages take on more risky projects because they are most profitable

Reference no: EM13811405

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