Explanation : An increase in market value of a company can benefit management
because their compensation is likely to be linked with company value.
Shareholders directly benefit from higher market value. Customers are
least likely to benefit from an increase in market value of the company.
Explanation : Management compensation does not directly impact the government's
interest as a stakeholder. Being a tax collector, the government is
interested in the company's profits whereas as in order to safeguard the
interests of the public the government would want to ensure the
environmental impact of the business's activities is not negative.
Explanation : The agency relationship is a relationship arising when a principal hires an
agent to perform particular tasks or services where the agent is expected
to act in the best interests of the principal.