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In Large corporations, especially those whose securities are publicly traded (PLCs) there is distinct separation between ownership and management. The shareholders are the principal (
In Large corporations, especially those whose securities are publicly traded (PLCs) there is distinct separation between ownership and management. The shareholders are the principal ( possess equity interest) and management are the agent (undertake the role of stewardship). Related to the management is the Agency Problem. Clearly explain the key issues or challenges that the Agency Problem create within Public Limited Companies( PLCs). ( 8 marks)
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