How might agency problems arise in partnerships?
What will be an ideal response?
Answer: Agency conflicts typically arise when there is a separation between the ownership and the management of a business. In a general partnership, especially if the partnership is small, there is less of a chance of an agency conflict if all the partners are involved with the business on a regular basis. However, in a limited partnership, the opportunity exists for an agency problem to arise between the general and the limited partners.
You might also like to view...
Effective sales management begins with:
a. determining sales goals. b. determining the most efficient structure for the sales force. c. specifying the sales force size. d. designing a compensation plan.
In high context cultures, the primary role of communication is to build relationships, not exchange information
Indicate whether the statement is true or false.