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The problem with the principal-agent (one or more answers may be correct) A. exists when the company management has stronger motives for maximizing profits than
The problem with the principal-agent (one or more answers may be correct)
A. exists when the company management has stronger motives for maximizing profits than the shareholders have.
B. would not arise if the shareholders have complete information about the management's actions.
C. in financial markets helps to explain why equities are a relatively important form of corporate finance.
D. can to some extent be prevented by the venture capital companies' strategy.
E. is a form of moral hazard problem
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