Which one of the following statements is TRUE?

An example of an agency cost is when the board of directors pays a dividend to shareholders.

An example of an agency relationship is when a private individual hires a lawyer to prepare her defense in a lawsuit.

An agency cost is the wage required to pay someone who is hired to perform a service.

An example of an agency relationship is when a supervisor hires a forklift operator.

The supervisor$-$employee relation between a production line supervisor and a production line operator is an exampl agency relationship.