In the agency relationship that involves a company's management and its shareholders, the shareholders are the agents.

Name: In the agency relationship that involves a company's management and its shareholders, the shareholders are the agents.
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In the agency relationship involving a company's management and its shareholders, the management acts as the agent while the shareholders are the principals. The management is employed to act on behalf of the shareholders in running the company.

In the Agency Relationship That Involves a Company's Management and Its