Please answer all questionsPrincipal-agent issues you have observed where you work (or where you...

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Please answer all questionsPrincipal-agent issues you have observed where you work (or where you last worked or volunteered)  a. Name and describe who the principals are. (2 points)    b. Describe principal-agent issues at various levels of the organization, and explain how they arise, using the concepts from Ch XXXXXXXXXXpoints)    c. (a) How, and (b) under what circumstances, does this organization work to mitigate principal-agent issues in the following ways: (5 points)    (1) monitoring    (2) individual performance-based incentives    (3) team performance-based incentives    (4) centralization in decision-making    (5) decentralization in decision-making

Komalavalli · Accepted Answer

a. Principal is basically another name for the owner or member of the business; in some companies, the principal is also the founder, chief executive officer or even the main investor. A company's principal can also delegate authority to an agent to act on his or her behalf in a legal capacity, as in the principal-agent relationship. While the role of a principal varies depending on the company, the main responsibilities include managing client and business relationships and assisting in the direction of the company's vision.
Conflicts of interest between the two parties, as well as asymmetric information between them, are the primary causes of the agent-owner problem. The principal frequently bears agency costs as a result of the agent-agent problem.

Please answer all questions Principal-agent issues you have observed where you work (or where you last worked or volunteered) a. Name and describe who the principals are. (2 points) b. Describe...

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