What is an agency relationship? When you first begin operations, assuming you are the only employee and only youf money is thvested in the business, would any agency conflicts exist? Explain your answer. If you expanded and hired additional people to help you, might that give rise to agency problems? Suppose you need additional capital to expand, and you sell some stock to outside investors. If you maintain enough stock to control the company, what type of agency conflict might occur? Suppose your company raises funds from outside lenders. What type of agency costs might occur? How might lenders mitigate the agency costs? Suppose your company is very successful, and you cash out most of your stock and tum the company over to an elected board of directors. Neither you nor any other stockholders own a controlling interest (this is the situation at most public companies). List six potential managerial behaviors that can harm a firm's value. What is corporate governance? List five corporate governance provisions that are internal to a firm and under its control. What characteristics of the board of directors usually lead to effective corporate governance