In the agency relationship between shareholders and management,
A) shareholders are agents of the managers.
B) managers are agents of the shareholders.
C) neither managers nor shareholders are agents.

Name: In the agency relationship between shareholders and management, A) shareholders are agents of the managers. B) managers are agents of the shareholders. C) neither managers nor shareholders are agents.
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Question

Quizplus · Accepted Answer

Managers are agents of the shareholders, acting on their behalf in the running of the company.

In the Agency Relationship Between Shareholders and Management