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The Principal-Agent Problem arises: A. because managers have little incentive to work in the interest of shareholders when this means working against their own self-interest.
The Principal-Agent Problem arises:
A. because managers have little incentive to work in the interest of shareholders when this means working against their own self-interest.
B. because of the separation of ownership and control in a corporation.
C. Both A and B
D. None of the above
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