Shareholders and Managers: In publicly traded companies, shareholders (principals)

hire managers (agents) to run the company on their behalf. However, managers may
have different objectives, such as maximizing their own wealth or job security,
which may not always align with the shareholders' goal of maximizing shareholder
value.

Creditors and Managers: Similar to shareholders, creditors (e.g., bondholders) may

face an agency problem when they lend money to a company. Managers may take actions
that benefit themselves but are detrimental to the interests of creditors.

Employees and Managers: Employees (principals) hire managers (agents) to represent

their interests within a company. The agency problem may arise if managers
prioritize their own interests, potentially leading to issues such as unfair
compensation or decisions that favor managerial interests over employee well-being.

Clients and Agents: In various professional services (e.g., financial advising,

legal representation), clients (principals) hire agents to act on their behalf. The
agents may face conflicts of interest if their compensation structures or
incentives are not aligned with the best interests of the clients.