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1. Discuss what are agency problems, why they arise and how they can be resolved. To receive full marks for this question, you must also

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1. Discuss what are agency problems, why they arise and how they can be resolved. To receive full marks for this question, you must also outline the consequences of agency problems (i.e., what are the costs) and identify at least three different mechanisms that can mitigate these problems 2. Are agency problems more likely in a sole proprietorship or a corporation? Please discuss

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