The Principal-Agent Problem Arises Primarily Because

Multiple Choice

The principal-agent problem arises primarily because

A) principals and agents share a common interest, leading to free-rider problems.
B) principals and agents are in an adversarial role, sharing no common interests.
C) principals pursue some of their own objectives, which may conflict with the objectives of the agents.
D) agents pursue some of their own objectives, which may conflict with the objectives of the principals.