Which one of the following statements is TRUE?

A. An example of an agency relationship is when a private individual hires a lawyer to prepare her defense in a lawsuit.
B. An example of an agency relationship is when a supervisor hires a forklift operator.
C. The supervisor-employee relation between a production line supervisor and a production line operator is an example of an agency relationship.
D. An agency cost is the wage required to pay someone who is hired to perform a service.
E. An example of an agency cost is when the board of directors pays a dividend to shareholders. 


Answer: A

Business

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