Briefly describe theagency problemthat exists between owners and lenders. How do lenders cause firms to incuragency coststo resolve this problem?To get us going, lenders are not involved in the day-to

To get us going, lenders are not involved in the day-to-day operations and business decisions made by the owners in running their businesses. Also, owners may not be making decisions, both short- and long-term, which are in the best interest of their lender(s) or that might affect a lender's decision with regards to lending money to a business (or its owners). Hence, the agency problem that exists in this type of relationship.