what agency relationship exists in a corporation?
Both are dependent a product
A corporation is considered an artificial being because it is a legal entity created by law, distinct from the individuals who own or manage it. Unlike natural persons, corporations do not exist in a physical sense and have rights and obligations conferred upon them by statutes. This artificial nature allows corporations to enter contracts, own property, and be liable for debts independently of their shareholders. As such, they can continue to exist beyond the lives of their founders or members.
The term that best describes the fact that the existence of a corporation can be never-ending is "perpetual life." This concept indicates that a corporation continues to exist independently of the changes in ownership or the lifespan of its shareholders. It allows for the continuous operation of the business, even as individuals come and go.
Agency theory explores the relationship between principals (owners or shareholders) and agents (managers) in a company, highlighting potential conflicts of interest. In a listed company, managers may prioritize personal goals over shareholder value, leading to agency costs. Shareholders, as providers of equity finance, seek to align managerial actions with their interests through mechanisms such as performance-based compensation, oversight, and governance structures. These strategies aim to mitigate the risk of managers acting in their own self-interest rather than maximizing shareholder returns.
I have included several links, which show an inexact relationship between gasoline price and oil price. There are other variables like crude oil inventories at play, so an exact relationship does not exist. If the data is smoothed over a 4 week period, a linear relationship presents itself. See related links.
what agency relationship exists within a corporation
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The examples of a government corporation are the Central Intelligence Agency (CIA) and the US Postal Service. The Supreme Court is not a government corporation; it is the highest court in the United States responsible for interpreting the law. The North Intelligence Agency does not exist.
No
This company exist also now.
A close corporation has unlimited continuity. This means that it will continue to exist regardless of changes in the composition of the members.
yes
No
The official propaganda agency of the US does not exist. The US government does not have a designated agency for propaganda.
A corporation has limited liability protection, and are typically not personally responsible for business debts. A corporation can live forever, even if an owner dies or sells interest, the corporation can still exist.
Corporation... A+