Why do agency conflict arise in the process of separating ownership and control over companies?

A.

lower than 5%.one of the above is correct

B.

Managers (agents) have individual incentives that do not fully align with the objectives of the owners (principals).

C.

Managers (principals) have individual incentives that do not fully align with the objectives of the owners (agents).

D.

Managers (principals) have individual incentives that fully align with the objectives of the owners (agents).

E.

Managers (agents) have individual incentives that fully align with the objectives of the owners (principals).