Q917
Step in initial public offering in which hired agents act on behalf of owners is classified as
A.
hiring problems
B.
agency problems
AnswerC.
corporation internal problems
D.
corporation external problems
Answer: Option B
Solution
Answer: Option B
Solution:
Step in initial public offering in which hired agents act on behalf of owners is classified as agency problems. 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.