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In which of the following cases will the agency problem between shareholders and managers be the greatest? 100% of the common stock is owned by
In which of the following cases will the agency problem between shareholders and managers be the greatest? 100% of the common stock is owned by the founder of the company who decided to retire and hired a manager to run his business for him.The Johnson family owns 50% of the common stock of the company. The other 50% is owned by 5 mutual funds. The common stock of the company is owned by many diverse shareholders, with no shareholder owning more than 1% of the outstanding stock. All top managers in the company own significant amounts of stock and stock options
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