The agency theory examines the relationship between the:
- Owners of the firm and the managers of the firm.
Relationship between owner and manager
In the most of firms, especially if it is private, the owner and the manager is the same person, but is important to have a different person in these positions because the manager is the person who operates the company to satisfy the needs of all the shareholders, no just his own goals like the case when is the same owner.
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