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    Contemporary Strategy Analysis Study Set 1
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    Exam 7: Organization Structure and Management Systems: the Fundamentals of Strategy Implementation
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    The Agency Problem Refers To
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The Agency Problem Refers To

Question 45

Question 45

Multiple Choice

The agency problem refers to:


A) The risk that the agent does not behave in the principal's interest
B) Problems that occur between a corporate headquarters and its branches or heads of divisions
C) Top managers' unethical and fraudulent behaviors
D) The problem with using outside contractors.

Correct Answer:

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