Within firms ____________ exits that arise when a principal employs/tasks a(n) ___________ to perform some service.

Agency relationship; agent

Inside-owner situation; primary

Decision-making authority; agent

Inside-owner situation; primary

An agency problem arises between _________ and ___________ because debtholders have no control over the firm.

Government authorities; managers

Stockholders; government authorities

Creditors; employees

Creditors; stockholders