three agency problems three generic agency problems arise in business firms 1 the conflict between the firm s owners the principals and its hired managers the agents 2 the conflict ...
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...Three agency problems generic arise in business firms the conflict between firm s owners principals and its hired managers agents controlling minority shareholders non constituencies such as creditors employees customers we are going to examine first of all how corporate governance structure can mitigate secondly role safeguarding appointment rights interests two feature form underlie investor ownership which implies that ultimate control over often lies partly or entirely hands far from day management delegated influence is generally exercised indirectly by electing directors therefore a canonical corporation multi member board selected largely distinct both managing officers law provides instruments order address problem right appoint remove members trusteeship strategy independent managerial power boards public corporations similar jurisdictions reserves some fundamental decisions general meeting while assigns much decision making be structured one tier single this used for example ...