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What is an agency relationship? Explain how monitoring costs, bonding costs and residual loss arise in...

Question:

What is an agency relationship? Explain how monitoring costs, bonding costs and residual loss arise in agency relationships.
What is an agency relationship? Explain how monitoring costs, bonding costs and residual loss arise in agency relationships. Why would managers' interests differ from those of shareholders?

Answers

An agency relationship is a relationship of trust between two or more persons where one person allows another person to act o

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