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Define the term principal-agent problem

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Reference no: EM131169175

1) Define the term principal-agent problem. What principal-agent problems exist in a market? What principal-agent problems exist in a firm? What are possible solutions to principal-agent issues within the firm?

2) What is moral hazard? How does the firm deal with moral hazard in its relationships with suppliers or customers? How does the firm deal with moral hazard internally?

Reference no: EM131169175

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