What is an agency conflict and why arises

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Reference no: EM132920599

Read the following statement: In large companies, the ownership of the company is spread over a number of shareholders and the company's owners may effectively have little control over management.

Answer the following :

Problem 1: What is an agency conflict and why it arises?

Problem 2: There is a number of mechanisms can help to better align the behavior of managers with the goals of shareholders. Speak about only one of these mechanisms that can be used to reduce the agency conflicts in a company?

Reference no: EM132920599

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