agency theory here very very simple
Just real basics okay to what we have is an owner and some time it is .I'm all we're doing is just giving the even these people just different tones the okay so with the only knew the business could be called not the owner here but the principal on the directors who work for the inner analytical directors me a call the agents so the agency theory is when you have people working for the owner but the owner that principle is not seem old once owned it for the principal has to trust the agents to work in his or her best interests does this solar thing he needs to ask all the time net n asking to is in itself a week all cost these agency relationship because he's not day he has to constantly ask are you doing their own
Joe okay me so we call this a cost if the agency relationship all simpler agency costs so quality more specific examples if agency costs low have been all day that's check in at the agency doing their job lot having a new general meetings in order to check to the agency doing their job right have an extraordinary general meetings to check that the agents doing that job right hope it helps