Which of the following statements is TRUE and briefly explain why?

1. An example of an agency relationship is when the CEO nominates a slate of candidates to be on the Board of Directors.
2. An example of an agency relationship is when a supervisor hires the fleet drivers.
3. An example of an agency relationship is when the Board of Directors hires a CEO to run a company.
4. The supervisor-employee relation between a production line supervisor and a production line operator is the example of an agency relationship.
5. An agency cost is the wage required to pay someone who is hired to perform a service.