Consider the following scenario and determine whether an agency conflict exists Five years ago, Hasan created a plant-care business that grew, stocked, and maintained fresh plants in office buildings throughout Oklahoma City. Over time, The Green Zone Inc. (TGZ) has grown from a proprietorship into a corporation, now reaching far beyond Oklahoma City. To finance and support this growth, TGZ issued shares that were sold to TGZ employees, Hasan's family members, and selected outsiders. Hasan is TGZ's chairman of the board of directors and CEO, but he is no longer the largest shareholder. At the latest annual meeting, two mutually exclusive proposals were placed on the ballot for discussion and vote. The first was put forth by Hasan and TGZ's management team, and the second was proposed by a small group of other shareholders. Both groups are adamantly opposed to the other group's proposal, even though both proposals would likely have the same effect on TGZ's value and riskiness Does an agency conflict exist between TGZ's management and the small group of opposing shareholders? O Yes; an agency relationship exists, and an agency relationship always gives rise to agency conflicts, regardless O No; Hasan was the original owner of TGZ, so he would always be sensitive to the concerns of the firm's O No; although an agency relationship exists between TGZ's management-including Hasan as TGZ's chairman of the actual behavior of the participants current owners (shareholders) and would not engage in an agency conflict and CEO and the firm's shareholders-there is no agency conflict, because no expropriation or wasting of the shareholders' wealth has occurred. O Yes; any conflict or disagreement between the firm's managers and its shareholders constitutes an agency conflict Which of the following actions will help ease agency conflicts and better align managers' objectives with the firm's shareholder wealth? O Pay the manager a large base salary with a huge stock option package that matures on a single date O Pay the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth