An agency issue is most apt to develop when: a firm encounters a period of stagnant growth. a firm downsizes. the control of a firm is separated from the firm's ownership. the firm's owner is also its key manager. a firm is structured as a general partnership
An agency will work well only when the management and the owners will different for it as both would have a check and balance upon each other so control of the firm should be under a separate body than the owners.
