1) What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer

1) What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer.

2) Suppose your company raises funds from outside lenders. What type of agency costs might occur? How might lenders mitigate the agency costs?

3) What is corporate governance? List five corporate governance provisions that are internal to a firm and are under its control.

4) Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?

5) Briefly explain how regulatory agencies and legal systems affect corporate governance