2. Agency conflicts are differences in the interests of a company’s owners and managers.

(a)  

3. Executive directors and senior managers usually earn most of their income from their companies.

(a)  

4. Agency costs involve having an agent make decisions on behalf of a principal.

(a)  

5. Managers are also agents acting for principals in charities, so there is potential for agency conflicts once again.

(a)  

6. Political theory holds that ownership doesn’t own a company; it’s merely holding it in trust.

(a)  

7. Stewardship models may include environmental concerns, where a company believes it should operate with as little impact as possible on the earth.

(a)  

8.    A solid sense of stewardship improves company morale when the workers feel they’re part of something bigger.

(a)  

9. Resource dependence theory (RDT) studies how the external resources of organizations affect behavior.

(a)  

10.       Critical resources are those the organization must have to function.

(a)  

11.       Managers throughout the organization understand their success is tied to customer demand.

(a)  

12.       Transaction cost theory is an alternative variant of the agency's understanding of governance assumptions.

(a)  

13.       Transaction cost theory and agency theory deal with the same issues and problems.

(a)  

14.       Governance costs build-up, including internal controls to monitor management.

(a)  

15.       Resource dependence theory is one of many theories of organizational studies that characterize organizational behavior.

(a)