Final answer:
Agency problems typically refer to the conflict of interest between company managers and owners, where managers may pursue goals that are not aligned with the owners' aim to maximize their investment.
Step-by-step explanation:
Agency problems can best be characterized as b. differing incentives between managers and owners. In a growing firm, where outside investors are providing capital, an agency problem may arise if managers, who are hired to run the company, have different goals than the owners or shareholders who want to maximize their investment.
As a firm becomes established, ventures such as mergers or product launches involve risks, which managers might be inclined to undertake for growth or personal benefit, possibly at odds with owners' desires for profitability or risk management.