Week 5 Agency Problems. Business & Marketing Coursework (Coursework Sample)
What key variables do you think owners need to investigate and address to prevent agency problems? Discuss your rationale. Please include your textbook as a reference : Samuelson, W. F., & Marks, S. G. (2015). Managerial economics (8th ed.). Hoboken, NJ: Wiley.
Week 5 Agency Problems
What key variables do you think owners need to investigate and address to prevent agency problems? Discuss your rationale. Please include your textbook as a reference:
Agency problems are mainly conflicts of interests between the principal the agent and especially shareholders and the management, while mitigating against the agency problems and costs helps to deal with the problems (Samuelson & Marks, 2015). Minimizing the conflicts of interest in agency relationships is possible through agreements, and identifying agents who can manage the firms as best as possible.
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