According to agency theory, what is the relationship between the stockholders and the managers?

A$.$

The stockholders are the directors who finance the business and the mangers are the principals who manage the business

B$.$

The stockholders are known as the agents who finance the business and the mangers are known as the principals who manage the business

C$.$

The stockholders are known as the principals who finance the business and the managers are known as the agents who manage the business

D$.$

The managers are known as the agents who finance the business and the stockholders are known as the principals who manage the business