Which One of the Following Statements Is TRUE

Multiple Choice

Which one of the following statements is TRUE?

A) An example of an agency relationship is when a private individual hires a lawyer to prepare her defense in a lawsuit.
B) An example of an agency relationship is when a supervisor hires a forklift operator.
C) The supervisor-employee relation between a production line supervisor and a production line operator is an example of an agency relationship.
D) An agency cost is the wage required to pay someone who is hired to perform a service.
E) An example of an agency cost is when the board of directors pays a dividend to shareholders.