Multiple Choice
Why does the "dark side" of principal-agent relationships exist?
A) Agents are often not rational.
B) Institutions sometimes force principal-agent relationships "underground."
C) Principals often force agents to do things against their will.
D) The interests of the agent and the principal may not be well aligned.
E) The principals usually do not know what they are doing.
Correct Answer:
Verified
Correct Answer:
Verified
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