Category | Assignment | Subject | Management |
---|---|---|---|
University | ..................... | Module Title | Leading and Managing Organizational Resources |
The agency theory depicts the concept in economics that emphasizes on the optimal form of contract to control relationships between a principal and an agent. The theory is intended towards addressing the challenges take place when the principal and agent tend to have distinct goals and risks preferences (Schillemans and Bjurstrøm, 2020). The theory focuses on the significance of effective information organization and risk-bearing costs in these relationships. It means that agency theory can be utilized for comprehending the relationships between agents and principals.
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