The current CEO of Sears is also the owner of a hedge fund. Since 2014, Sears has consistently obtained billions of dollars of loans from its CEO’s hedge fund. On Feb 1, 2018, Sears borrowed another 210 million from its CEO. Without details of the loans, what is the nature of the loan, from the perspective of the agent-principal relationship?
The current CEO of Sears is also the owner of a hedge fund. Since 2014, Sears
has consistently obtained billions of dollars of loans from its CEO’s hedge fund. On Feb 1, 2018, Sears borrowed another 210 million from its CEO. Without details of the loans, what is the nature of the loan, from the perspective of the agent-principal relationship?