Does William have an agency conflict to deal with?

No; by having part$-$time, as opposed to full$-$time, employees, William is prevented from experiencing an agency conflict.

Yes; there is always an inherent conflict of interest between owners and operators $($managers$).$

No; as both the owner and operator of William's Tantalizing Tees, William has not created the necessary agency relationship through. which an agency conflict can exist.

Yes; as both the owner and operator of William's Tantalizing Tees, William has created the necessary agency relationship through which an agency conflict can exist.

For the past $40$ years, companies have attempted to attract, retain, and encourage managers by developing attractive compensation packages. These compensation packages have also been intended to reduce potential agency conflicts between these managers and the firm's shareholders.

In the best interest of shareholders, compensation packages should be structured in a way such that managers have an incentive to maximize the $.$ value of the company's common stock price.

Edinburgh Industrial's stockholders are mostly individual investors, and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions in Edinburgh Industrial's stock, direct shareholder intervention would be $q,$ likely to motivate the firm's management.