The agency theory examines the relationship between the:
- <u>Owners of the firm and the managers of the firm</u>.
<h3>
Relationship between
owner and
manager</h3>
In the most of firms, especially if it is private, the owner and the manager is the same person, but is important to have a different person in these positions because the manager is the person who operates the company to satisfy the needs of all the shareholders, no just his own goals like the case when is the same owner.
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The solution that led to Missouri becoming a state is conveniently known as the Missouri Compromise. Missouri would join the country as a slave state, but they agreed that no new slave states could be created above the Missouri Compromise line and that Maine had to be admitted as a free state to hold the balance between slave and free states.
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