As It Relates to Corporations, the Principal-Agent Problem Is That

As it relates to corporations, the principal-agent problem is that

A) the goals of the corporate managers (the principals) may not match the goals of the corporate owners (the agents) .
B) the goals of the corporate managers (the agents) may not match the goals of the corporate owners (the principals) .
C) the federal government (the agent) taxes both corporate profits and the dividends paid to stockholders (the principals) .
D) it is costly for the corporate owners (the principals) to obtain a corporate charter from government (the agent) .

Correct Answer:

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