- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hello sir this is a theory question on principal and agency problem. The question which of the following is an illustration of the principle agent problem.
The answer is manager avoid debt finance because of lower interest payments to increase their job security.
How is that a principle agent problem??
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.