The Agency Problem in Finance: Definition & Examples


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question 1 of 3

An agency problem in finance usually pertains to whom?

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1. Who is considered the agent in finance?

2. Enron's management inaccurately reported inflated stock prices. How was this an agency problem?

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Use this interactive quiz and worksheet to test your knowledge of the agency problem in finance. The practice questions on the printable worksheet can aid in your understanding before, during, and after you view the lesson.

About This Quiz & Worksheet

This quiz and worksheet will gauge your knowledge of the agency problem in finance. In order to pass the quiz, you'll want to be familiar with the parties to whom the agency problem in finance pertains, the role the agency is expected to play, and the incentives in place to guard against the agency problem.

Quiz & Worksheet Goals

This finance assessment will test your knowledge of:

  • Definition of the agency problem in finance
  • Parties involved in the agency problem
  • Preventing the agency problem
  • Corporations with agency problems

Skills Practiced

  • Defining key concepts- ensure that you can accurately define key phrases such as agency and incentives
  • Knowledge application - identify the job of the agency and whose interests it protects
  • Information recall - access the knowledge you've gained regarding the agency problem in finance and real examples of the agency problem

Additional Learning

By reviewing the corresponding lesson entitled The Agency Problem in Finance: Definition & Examples to learn more about this financial issue. The Agency Problem in Finance lesson provides an overview of the following:

  • Definition of the agency problem in finance
  • Roles of the agency
  • Incentives guarding against agency problems
  • Examples of agency problems