(Full paper is not needed. Just answers to the questions)Sup

(Full paper is not needed. Just answers to the questions)Suppose you decide (like Steve Jobs andMark Zuckerberg did) to start a company. Your product is a software platformthat integrates a wide range of media devices, including laptop computers,desktop computers, digital video recorders, and cell phones. Your initialmarket is the student body at your university. Once you have established yourcompany and set up procedures for operating it, you plan to expand to othercolleges in the area, and eventually to go nationwide. At some point, hopefullysooner rather than later, you plan to go public with an IPO, then to buy ayacht and take off for the South Pacific to indulge in your passion forunderwater photography. With these issues in mind, you need to answer foryourself, and potential investors, the following questions.a. What is an agency relationship? When you firstbegin operations, assuming you are the only employee and only your money isinvested in the business, would any agency conflicts exist? Explain your answer.b. If you expanded, and hired additional people tohelp you, might that give rise to agency problems?c. Suppose you need additional capital to expandand you sell some stock to outside investors. If you maintain enough stock tocontrol the company, what type of agency conflict might occur?h. List three provisions in the corporate charterthat affect takeovers.I. Briefly describe the use of stock options in acompensation plan. What are some potential problems with stock options as aform of compensation?J. What is block ownership? How does it affectcorporate governance?K. Briefly explain how regulatory agencies andlegal systems affect corporate governance.

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