Select as choices all of the following that you believe depict the 'agency' relationship inside the corporation.
Note: A correct answer requires that you check ALL that apply.

• In the context of the agency relationship managers are the principals.
• In the context of the agency relationship shareholders are the principals.
• The goal of shareholder wealth maximization often leads to agency costs.
• The compensation plan has many advantages but using it to reduce agency costs is NOT one of these advantages.
• One type of agency costs are lost opportunities caused by conflicts too difficult to resolve.
• The goals of the managers may not always align themselves with the goals of the shareholders.
• One of the goals of the study of modern corporate finance is to maximize agency costs.