Intermediate Financial Management
14th Edition
ISBN: 9780357516782
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Question
Chapter 10, Problem 2Q
Summary Introduction
To discuss: Possible agency conflict between managers/ inside owners and outside shareholders.
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How do you resolve conflict of interest in an organization?
What is the possible agency conflict between inside owner/managers andoutside shareholders?
Agency problem arises due to the divergence or divorce of interest between the principal and the agent. Discuss shareholders-management agency relationship, conflict and resolution
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