Which of the following are agency relationships in a company?

Question

Quizplus · Accepted Answer

Agency relationships exist when one party (the principal) hires another party (the agent) to act on their behalf. In a company, there can be multiple agency relationships, such as between shareholders (who are the owners/principals of the company) and inside owner/managers (who are the agents hired to manage the company on behalf of the shareholders), or between outside owners (such as investors) and inside owner/managers. Employees and unions do not necessarily represent agency relationships as their goals and interests may not always align with those of the company or its owners. Shareholders and creditors may have a contractual relationship, but it is not necessarily an agency relationship.

Which of the Following Are Agency Relationships in a Company