An agency problem frequently exists in situations where there is a separation of

Question

An agency problem frequently exists in situations where there is a separation of: a. treasury and controller functions. b. working capital and capital structure management. c. company ownership and company management. d. marketing and financial management. e. investment and working capital management. An agency problem frequently exists in situations where there is a separation of: a. treasury and controller functions. b. working capital and capital structure management. c. company ownership and company management. d. marketing and financial management. e. investment and working capital management. An agency problem frequently exists in situations where there is a separation of: a. treasury and controller functions. b. working capital and capital structure management. c. company ownership and company management. d. marketing and financial management. e. investment and working capital management.

Explanation / Answer

Answer

c .) Company ownership and company management

Explanation : Company ownership refer to shareholders (principal) & company management refer to managers (agents). Its one of the common conflict of interest exists in corporates due to various reasons some them are as follows ;-

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