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Agency Theory Problem Classification Quiz
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Agency Theory Problem Classification Quiz

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Questions and Answers

According to agency theory, what is the type-1 agency problem?

  • The separation of ownership and management
  • The conflict between majority and minority shareholders
  • The misalignment of shareholders goals
  • The conflict between owner and manager (correct)
  • What does the type-2 agency problem represent?

  • The separation of ownership and management
  • The misalignment of shareholders goals
  • The conflict between majority and minority shareholders (correct)
  • The conflict between owner and manager
  • Which category of agency problem involves the conflict between owner and manager?

  • Type-1 agency problem (correct)
  • Type-2 agency problem
  • Both type-1 and type-2 agency problems
  • None of the above
  • What is the main issue at the heart of agency theory?

    <p>The separation of ownership and management</p> Signup and view all the answers

    Which type of agency problem can manifest itself in the misalignment of shareholders goals?

    <p>Type-2 agency problem</p> Signup and view all the answers

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