Define the concept of agency problems and cite three


Define the concept of agency problems and cite three examples of such problems.

Multiple choices are:

it is when a principal is unsatisfied with an agent

it is when there is a potential conflict of interest between the principal and the agent

asset substitution and underinvestment are agency problems

employees not working when they are supposed to be working is an agency problem

A and B

A and C

A and D

B and C

B and D

C and D

all but A

all but B

all but C

all but D

all are true

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Financial Management: Define the concept of agency problems and cite three
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