12. Suppose you are considering renting an apartment. You, the renter, can be viewed as an agent...
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12. Suppose you are considering renting an apartment. You, the renter, can be viewed as an agent while the company that owns the apartment can be viewed as the principal.
What agency conflicts do you anticipate? Suppose, instead, that you work for the apartment company. What features would you put into the lease agreement that would give the renter incentives to take good care of the apartment?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780134475561
4th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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