agency problem

Definition

A conflict arising when people (the agents) entrusted to look after the interests of others (the principals) use the authority or power for their own benefit instead.

It is a pervasive problem and exists in practically every organization whether a business, church, club, or government. Organizations try to solve it by instituting measures such as tough screening processes, incentives for good behavior and punishments for bad behavior, watchdog bodies, and so on but no organization can remedy it completely because the costs of doing so sooner or later outweigh the worth of the results. Also called principal-agent problem or principal-agency problem.

Use 'agency problem' in a Sentence

The local police department had recently come under fire from the public questioning agency problems and demanding accountability be taken for acting to their own benefit.

There was an agency problem that was quite complex in this instance as there were many interests to be considered.

单词	agency problem
释义	agency problem Definition A conflict arising when people (the agents) entrusted to look after the interests of others (the principals) use the authority or power for their own benefit instead. It is a pervasive problem and exists in practically every organization whether a business, church, club, or government. Organizations try to solve it by instituting measures such as tough screening processes, incentives for good behavior and punishments for bad behavior, watchdog bodies, and so on but no organization can remedy it completely because the costs of doing so sooner or later outweigh the worth of the results. Also called principal-agent problem or principal-agency problem. Use 'agency problem' in a Sentence The local police department had recently come under fire from the public questioning agency problems and demanding accountability be taken for acting to their own benefit. There was an agency problem that was quite complex in this instance as there were many interests to be considered.
随便看	direct flight directing direct insurance direct investment direct inward dialing (DID) direct inward system access (DISA) directional tariff directive directive interview directive leadership direct labor direct labor burden direct labor cost direct labor efficiency variance direct labor price variance direct labor rate variance direct labor standard direct labor total variance direct liability direct loan program direct loss directly associated cost directly engaged direct mail direct mail advertising