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Corporate Finance

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Real World Examples of Agency Conflicts

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Which of the following situation may lead to potential agency conflict?

A

A motorist is insured against property damage to her car.

B

Two real estate agents compete for a selling homeowner's business.

C

A used car dealer knows the quality of her inventory better than the customers do.

D

A student will not pass an exam if he does not study.

E

A bill collector keeps calling a delinquent borrower who does not have any money.