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Question 6 Explain the principal-agency problem. Can you propose one potential solution for this problem to reduce costs associated with the problem? Do you think

Question 6

Explain the principal-agency problem. Can you propose one potential solution for this problem to reduce costs associated with the problem? Do you think that your proposed solution can completely eliminate he principal-agency problem? Please justify your answer. The word count limit for answering this question is 400 words. (8 marks)

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