A. Manager and Employees
B. Manager and Government
C. Manager and Shareholders
D. Parent to Subsidiary
✅ The correct answer is option C.
Agency problem is between manager and shareholders. The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another’s best interests. In corporate finance, the agency problem usually refers to a conflict of interest between a company’s management and the company’s stockholders.
Agency problem is between manager and shareholders. The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another’s best interests. In corporate finance, the agency problem usually refers to a conflict of interest between a company’s management and the company’s stockholders.