Concept
Version 7
Created by Boundless
Principle-Agent Problem
![Principle agent problem](../../../../../../../../../figures.boundless-cdn.com/20310/full/principal-agent.jpg)
Principle agent problem
The diagram shows the basic idea of the principle agent problem. P is the principle and A is the agent. It clearly illustrates the working relationship between the principle and the agent while highlighting the presence of business partnership as well as self-interest.
Source
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