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20 November, 19:30

Assume a large corporation is experiencing the principal-agent problem. What could the corporation do to minimize this problem? The company could

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  1. 20 November, 19:56
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    1) Structure rewards/pay to be based on performance

    2) Make them stakeholders/shareholders of the principal

    Explanation:

    The major principal/agent problem is the agent not acting in the best interest of the principal. Taking the steps above could minimize the problem
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