http://www.brighthub.com/office/finance.aspxenhttp://www.brighthub.com/office/finance/articles/19034.aspxMon, 21 Sep 2009 19:10:02 GMTb133e95a-c263-4882-8f2a-b24547eff78e:19034johngWhen one person acts in the interests of another, the possibility of a moral hazard results in expenditures to avoid a negative outcome for the principal. Agents acting in the interests of a principal present the danger of a moral hazard when agents can behave unobserved in their own self-interest. The separation of ownership and control in the mod...http://www.brighthub.com/office/finance/articles/19033.aspxMon, 21 Sep 2009 19:09:33 GMTb133e95a-c263-4882-8f2a-b24547eff78e:19033johngConflict in principal-agent relationships, called an agency problem, results in monitoring by principals to protect their financial interests. Principal-Agent Relationships occur whenever one person acts in the interests of another. Complex modern corporations have so many stakeholders that there are many simultaneous principal-agent pairings makin...http://www.brighthub.com/office/finance/articles/19031.aspxMon, 21 Sep 2009 19:09:04 GMTb133e95a-c263-4882-8f2a-b24547eff78e:19031johngWhenever one person acts in the interests of another, there are bound to be conflicts between the agent acting on behalf of the principal and working in his/her own self-interest. Principal-Agent Relationships exist whenever one person or party works in the interests of another party. Some of these relationships arise through obligatory contrac...