Explain the term “Agency Problem”, and identify four (4) ways by which shareholders can deal with it. CR

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 1PB: You are the president of Duke Company and are leading the company through the process of...
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You have just been employed as the new Chief Executive Officer of a medium-sized company that is listed on the Ghana Stock Exchange. At the maiden Board Meeting, the chairman advised you and your management team to avoid what he termed as “Agency problem”.

Explain the term “Agency Problem”, and identify four (4) ways by which shareholders can deal with it.
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