Agency conflicts between managers and shareholders

Remember, an agency relationship can degenerate into an agency conflict when an agent acts in a principal. In large corporations, these conflicts most frequently involve the enrichment of the firm perquisites or power and prestige$)$ at the expense of the company's shareholders. This usurping a occur when shareholders do not have sufficient information about the decisions and actions being

Consider the following scenario and determine whether an agency conflict exists:

Daniel owns Daniel's Tantalizing Tees, a T$-$shirt shop in a small college town in Kansas. With operates the business in accordance with his personal goals, dreams, and capabilities.

Does Daniel have an agency conflict to deal with?

No; as both the owner and operator of Daniel's Tantalizing Tees, Daniel has not create an agency conflict can exist.

Yes: there is alwavs an inherent conflict of interest between owners and onerators $($m