Is this a potential agency conflict between Alexander and Akiko?

No; Alexander and Akiko co$-$own and co$-$manage ANB and have a partnership agreement that makes them equal, so an agency conflict cannot exist.

No; Alexander and Akiko are both authorized to spend ANB's money, so no conflict of interest can occur.

Yes; Alexander is misappropriating some of Akiko's wealth by unilaterally purchasing a nonbusiness asset using ANB's funds.

No; Since Alexander acknowledged that the car would not be used to support the business, no agency conflict can arise.

Which of the following actions will help ease agency conflicts and better align managers' objectives with the firm's shareholder wealth?

Pay the manager a large base salary with a huge stock option package that matures on a single date.

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.

Amalgamated Metals Corporation'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 Amalgamated Metals Corporation's stock, direct shareholder intervention would be likely to motivate the firm's management.

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