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How did the Agency problem occur? , please answer in your words Agents may potentially misrepresent the firm and act in ways that favor their
How did the Agency problem occur?
,
please answer in your words
Agents may potentially misrepresent the firm and act in ways that favor their career rather than complying with the goal of the firm; that is maximizing the wealth of the stockholder, through maximizing the stock price. As a result, the company would face an Agency problem. Having said that it is important to highlight some of the agency problems that had occurred in the financial markets, one interesting and important incident is the World Com scandal. In this research case study, you should complete the following: 1. Research the reason behind the World Com Scandal. 2. How did this agency problem occur? 3. How did this agency problem affect the companyStep by Step Solution
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