Purchase Solution

What is meant by the term "agency problem"?

Not what you're looking for?

Ask Custom Question

What is meant by the term "agency problem"? Why is this important for corporate governance?

Purchase this Solution

Solution Summary

This solution explains the agency problem and discusses terms with examples from the perspective of a CEO and the shareholders of a company. This solution is 127 words.

Solution Preview

Agents make decisions that affect principals. For instance, agents could be the CEO of a company, and principals are the shareholders.

Agency problems occur when there is a conflict of interest ...

Purchase this Solution

Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Introduction to Finance

This quiz test introductory finance topics.