Identify two stakeholder group who should have monitoring


Problem

A key assumption of agency theory is monitoring.

1. What is monitoring?

2. Identify two stakeholder group/types who should have been monitoring Enron executives, discussed regarding Enron.

3. Explain what caused the two groups you identified in (2) to not appropriately monitor Enron executives. In other words, identify an essential component of agency theory that appears to have been violated in these failures to monitor. Justify answer with reference to the experiences discussed with Enron.

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Finance Basics: Identify two stakeholder group who should have monitoring
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