In a corporation, __________ are the principals and __________ are their agents.

Question

In a corporation, __________ are the principals and __________ are their agents.
	a.	managers; shareholders
	b.	shareholders and managers; employees
	c.	directors; managers
	d.	customers; shareholders
	e.	shareholders; managers and directors

GPT-4o mini · Answer

The correct answer is: **e. shareholders; managers and directors**. In a corporation, shareholders are the owners (principals) who invest in the company, while managers and directors are hired to run the company and act on behalf of the shareholders (agents).