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1. The relationship between stockholders and management is an agency relationship. In such a relationship, possible conflicts of interest or agency problem could arise. Explain

1. The relationship between stockholders and management is an agency relationship. In such a relationship, possible conflicts of interest or agency problem could arise.

Explain five (5) control devices available to the shareholders to reduce the potential of agency problem and to ensure that management acts for the best interest of the stockholders.

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