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Our other Assistant Professor, Maryam Marjovi, has been preparing assiduously for this Test. She anticipated a question on agency theory. She is wondering who are

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Our other Assistant Professor, Maryam Marjovi, has been preparing assiduously for this Test. She anticipated a question on agency theory. She is wondering who are agents and, also, who are principals. In addition, she wants to know what exactly are the two problems with which agency theory is principally concerned. She reviews the presentation in the textbook on agency theory and she cannot readily find satisfactory answers to these three questions. What do you think the answers should be? Please present the answers in separate and numbered paragraphs and state the source of your answers. (6 marks)

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