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True of False: 1- Management is an agent acting on behalf of employees (principal) 2- A...

True of False:

1- Management is an agent acting on behalf of employees (principal)

2- A hostile takeover is when one company takes over another without their approval.

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Answer #1

1. False, management is an agent appointed by shareholders on their behalf. Therefore principal and agent relationship exists between management and shareholders, not management and employees. Also management is not appointed by employees for having their welfare done.

2. True, In a hostile takeover management's approval is not taken. Although shareholders do approve this transaction. Therefore due to insufficient clarity about whose approval question is asking about i am assuming it is asking about management's approval.

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