Give an example of a possible agency conflict between inside owners/managers and outside shareholders. What could be done to mitigate this issue?
Your journal entry must be at least 200 words in length. No references or citations are necessary.
Unit V Essay
Instructions
External Financing
We examined two important topics in finance during this unit: external financing requirements and agency conflicts. Address the prompts below in your essay.
Include an introduction that summarizes the main points with an example.
Critically reflect on the importance of external financing requirements. What key factors must be considered when determining external financing requirements?
Briefly describe the types of agency conflict and provide an example of at least one of the types of agency conflict to support your response.