Q743
Agency problem is between
A.
Manager and Employees
B.
Manager and Government
C.
Manager and Shareholders
AnswerD.
Parent to Subsidiary
Answer: Option C
Solution
Answer: Option C
Solution:
Agency problem is between manager and shareholders. The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another's best interests. In corporate finance, the agency problem usually refers to a conflict of interest between a company's management and the company's stockholders.