A principal-agent problem occurs as the principal's and the agent's interests or incentives are different. Prior to beginning work on this discussion, read Tim Worstall's article, Solving the Principal Agent Problem: Apple Insists that Executives Must Hold Company Stock(Links to an external site.). Who are the principal and the agent in a company like Apple in the article? How are their interests or incentives in conflict? Can this principal-agent problem be resolved? Make sure to discuss incentive effects.