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What is an agency relationship? What is managerial opportunism? What assumptions do owners of corporations make...

What is an agency relationship? What is managerial opportunism? What assumptions do owners of corporations make about managers as agents?

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An agency relationship is one in which a specialist is hired to perform the act of making decisions in a particular area of interest concerned with the organization.

Managerial opportunism is when self - seeking individuals act in their own personal best interests versus that of the company 's best interests.

Shareholders and owners of corporations assumes that the majority of managers will not take part in the opportunism ,but that it may and will occur and certain checks and balances have to be in place to keep an eye from time to time.

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