Which of the following statements is most correct?
A. Agency conflicts between stockholders and managers are not really a problem when outsiders (i.e., non-managers) own shares in a corporation.
B. Managers may operate in the stockholders' best interests, or managers may operatein their own personal best interest. As long as managers stay within the law, thereare no effective controls that stockholders can implement to control managerialdecision making.
C. One mechanism that helps reconcile managers' goals with those of the shareholders isthe threat of being fired.
D. An agency relationship exists when one or more persons hire another person toperform some service but withhold decision-making authority from that person.
E. All of the statements above are false.