Answer:
The correct answer is letter "A": the principal wants the agent to act on her own behalf.
Explanation:
The principal-agent problem arises when a principal (stakeholder) hires an agent (manager) to act on his or her behalf but the instructions given by the principal generate a conflict of interest for the agent. Usually, agents have their own points of view on how to handle businesses based on their operations. However, principals may request agents to drive the company towards a different destiny securing the principals' interest.
