xuyhh4923 xuyhh4923
  • 10-09-2020
  • Business
contestada

The agency relationship in corporate finance occurs:__________

Respuesta :

ogorwyne
ogorwyne ogorwyne
  • 11-09-2020

Answer:

when the shareholders hire a manager to run their company.

Explanation:

An agency relationship in corporate finance is a situation whereby a party known as an agent is hired by another party which is the principal, to perform certain functions or services. Based on this question, the share holders are known as the principal while the manager act as the agent. The relationship is formed after the agent has agreed that he or she will represent the principal

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