Five vears ago, Jamal created a plant-care business that grew, stocked; and maintained fresh plants in office buildings throughout Portiand. Over time, The Green Zone Inc. (TGZ) has grown from a proprietorship into a corporation, now reaching far beyond Portlarid. To finance and support this prowth, TGZ issued shares that were sold to TGZ employees, Jamal's family members, and selected outsiders. Jamal is TGZ's chairman of the board of directors and CEO, but he is no longer the largest sharehoider. At the latest annual meeting, two mutually exclusive proposals were ploced on the ballot for discussion and vote. The first was put forth by Jamal and. TGZ's management team, and the second was proposed by a small group of other sharehoiders, 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. Dots an agency confict exist between TGZ's mansgement and the smail group of opposing shareholders? No; although an agency relationship exists between TGZ's management-including Jamal as TGZ's chairman and CEO and the firm's shareholders - there is no agency conflet, because na expropotation or wasting of the shareholders' wealth has occurred. No: Jamal was the original owner of TCIZ, so he would alwoys be sensitive to the concerrs of the firm's current owners (shareholders) and would not engage in an agency confict. Yesj any confict or disagreement between the firm's managers and its sharchalders constitutes an agency cornict. Yes: an agency relationship exists, and an agency relptionship olways gives rise to agency conficts, regardless of the actual behavior of the particlpants