The principal-agent problem arises when . a. the owners of the firm also manage the firm
b. managers serve on a firm's board of directors
c. a firm is organized as a sole proprietorship
d. the owners of the firm are not the people managing the firm

a. the owners of the firm also manage the firm

Explanation:

In domain of supply chain management and economics principal–agent problem can be regarded as one that occur when single person or an entity stand in the position of making decisions or in position of taking actions on behalf of another person/ entity Instance of this is real-life example where the way that companies are been owned and been operated. The owners of the company i.e "principal" of the company will be the one to elect a board of directors.

It should be noted that the principal-agent problem arises when the owners of the firm also manage the firm

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-lavira : )