Answer:
The correct answer is letter "B": The agent has different incentives than does the principal.
Step-by-step explanation:
Incentive conflicts more often called principal-agent problems arise when a principal (stakeholder) hires an agent (manager) to handle businesses on behalf of the principal but the principal's interest is different from the agent's purpose.
Agents are paid for following the principal's instructions but in most cases, when it comes to decision-making, the point of view of the agent differs from the position of the principal. The principal's point of view is typically self-biased.