Answer:
According to agency theory, a principal's and an agent's interests do not always coincide.
Explanation:
An agency relationship is formed when "agents" (workers) are hired by a principal (owner) to carry out work for him.
However, rather than a homogeneous, profit-maximizing organization, the business is seen as a "nexus of contracts" among self-interested individuals.
Therefore, according to agency theory, a principal's and an agent's interests do not always coincide.