Principal-Agent Problem

Principal-Agent Problem,

What is Principal-Agent Problem?

  1. An agent's primary problem is a conflict of interest between an individual or group and an agent who is authorized to act on his or her behalf. An agent can work in the best interest of the client.

    • The agent's main problem is a conflict of interest between the asset owner and the person to whom control of the asset is assigned.
    • Problems can arise in many situations, from the relationship between the client and the lawyer to the relationship between the shareholder and the CEO.
    • Resolving a key agent's problem may require changing the payroll system to prioritize or improve the flow of information.

Literal Meanings of Principal-Agent Problem


Meanings of Principal:
  1. First, in terms of importance.

  2. (Amount) represents the amount actually invested or borrowed.

  3. A person who holds a high position or most important position in an organization, institution or group.

  4. The amount borrowed or invested with the payment of interest.

  5. The person for whom the other person acts as a representative or agent.

  6. The person directly responsible for the crime.

  7. The main beam that supports Tuesday.

  8. The stopping organ plays the open pipe master record, usually an octave above the scale.

Sentences of Principal
  1. Major cities of the country

  2. Significant value of your investment

  3. A San Francisco-based design company

  4. Winners receive interest without affecting customers

  5. The broker in Tokyo works as an agent, not a director

  6. Difficulty usually involves words or actions before the client's offense.

  7. Agriculture begins with the foundation of the summit slab.

  8. All rules are included in the manual

Synonyms of Principal

main, chief, primary, leading, foremost, first, most important, predominant, dominant, prominent, most prominent, boss, chief executive, chief executive officer, CEO, chairman, chairwoman, managing director, MD, president, director, manager, employer, head, leader


Meanings of Agent:
  1. Someone else is working on behalf of the individual or group.

  2. People or objects that play an active role or cause certain effects.

Sentences of Agent
  1. If you are ill, the permanent attorney allows a nephew to act as your representative

  2. Higher education is generally a liberal class that often sees itself as an agent of social change.

Synonyms of Agent

representative, negotiator, business manager, emissary, envoy, factor, go-between, proxy, surrogate, trustee, liaison, broker, delegate, spokesperson, spokesman, spokeswoman, frontman, mouthpiece, medium, means


Meanings of Problem:
  1. Problems or situations are considered undesirable or dangerous and need to be addressed and resolved.

  2. An investigation based on facts, discoveries or laws or the conditions set out to establish them.

Sentences of Problem
  1. Do you have financial problems?

  2. Under his influence, Derek worked on a number of statistical mechanics issues.

Synonyms of Problem

difficulty, issue, trouble, worry, complication, difficult situation, mess, muddle, mix-up