The potential conflict of interest between a firm's owners and its managers is referred to as which type of conflict?A. OrganizationalB. StructuralC. FormationD. AgencyE. Territorial

Respuesta :

Answer:

The correct answer is (D)

Explanation:

Agency problem is a conflict which arises between firm's owners, and manager's due to a conflict of interest. Board of directors generally give compensations and rewards to the mangers to avoid such as situation. Communication and a complete control are the key prospects which can help to avoid conflict of interest that leads to agency problem or conflict.