Agency theoryan agency relationship may be defined as a, Ask an Expert

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AGENCY THEORY

An agency relationship may be defined as a contract under which one or more people (the principals) hire another person (the agent) to perform some services on their behalf, and hand over some choice making authority to that agent. In the financial management framework, agency connection exists among:

(a) Shareholders and Managers
(b) Debt holders and Shareholders

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9516060

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