Week 5 Agency Problems. Business & Marketing Coursework

Week 5 Agency Problems
Name
Institution
Date
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. Owners need to investigate the cause of conflict of interests and information asymmetry, while aligning the common interests, minimizing the conflicts of interest in agency relationships, and improving access to information.
Improving access to information is necessary to lower the agency costs and conflict of interests between the owner and agent. In many cases, the owners and agents...