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| Topic: |
Business
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| Number of pages / Number of words: |
13 / 3472 |
Essay's paper body
The P-A model basically defines the main aspect within corporate structures. That focal perspective of the corporate structure supposes that the main concern in corporations is to avoid the occurrence of agency problems. Corporations basically have to focus on the atomic relation between shareholders (principal) and managers (agents)...
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In that sense managers always have the inclination to act in their own interest despite the possible diminishment of shareholders’ wealth.
b) The executives have an opportunistic behavior because they are rationally economic (as opposed to being social). Social life is conceived by this model as nothing more than a series of contracts between individuals...
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General points of the essay
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