Because managers have less incentive to maximize profits than the stockholders-owners do, stockholders find it costly to monitor managers; thus, they are reluctant to purchase equities.
a. agents; agents
b. agents; principals
c. principals; agents
d. principals; principals

b.

Explanation:

The manager is an agent of th stockholders-owners, who is the principal

An agent is like a representative and should act in the interest of the principal, but as the interest of the two may conflict, you have this agent-principal problem

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choose your topic and establish your purpose. a lot of writers struggle to define the initial focus for their paper.

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review and adjust.