John is a financial manager of the leading airline company in UK. He acts in the best interest of the stockholders by taking actions that increase the value of the stock since the leading airline company is a large corporations ownership is distributed over a large number of stockholders. This dispersion of ownership makes John to became among management team that effectively controls the company. Required 1 Explain four key decision that John must be concerned with. 2 What is an agency relationship? Identify the position of John in the agency relationship. 3 What is an agency problem?

2 Explain. Independent projects. Mutually exclusive projects.