What is meant by agency relationships and agency costs

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Reference no: EM131340213

1. Explain what is meant by agency relationships and agency costs.

2. Give some examples of agency costs incurred by shareholders in the agency relationship between the shareholders (owners) and management of a firm.

3. What is the source of potential agency conflicts between owners and bondholders? Who is the agent and who is the principal in this relationship?

Reference no: EM131340213

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