Final answer:
Agency problems are most likely to be associated with corporations. In a corporation, ownership is separated from management, creating a principal-agent relationship that can lead to conflicts of interest.
Step-by-step explanation:
Agency problems are most likely to be associated with corporations. In a corporation, the ownership is separated from management, which creates a principal-agent relationship. Agency problems arise when there is a conflict of interest between the owners (shareholders) and the managers (agents) who are responsible for making decisions on behalf of the owners. These problems can include managerial self-interest, shirking, and risk aversion, among others.