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An agency relationship occurs when a principal hires an agent to perform some duty. A conflict, known as an "agency problem," arises when there is a conflict of interest between the needs of the principal and the needs of the agent.
Discuss the possibility of agency problems in a business that is a (a) proprietorship, (b) partnership with seven partners, and (c) corporation with 100,000 stockholders. Make you case and back up your opinions.
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