What is meant by the principal agent problem in the case of, Financial Management

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What is meant by the principal agent problem in the case of

What is meant by the principal agent problem? In the case of the relationship between shareholders and management, who is the principal and who is the agent? What is an example of something that the agent in this case might do that would be in conflict with the goals of the principal? What actions could the principal take to try to prevent (or at least reduce) this problem?

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