Share an example that proves that this statement is correct- not given in chapter 5 of "without the law of agency, corporations could not function at all". And outline the advantages and disadvantages of the various types of agency relationships.
Without the law of agency, corporations could not function because Corporation performs when the incorporators file state-required documentation with the secretary of state. Performing the corporation is very complex . Only Agency law principles allow corporations to fully act. With the agency relationship, there is a principal and an agent. The corporate business entity is a legal thing. Agency principles make corporations accountable for their actions --- whether or not the actions are law abiding. The Agency principles also help protect the shareholders of the corporation. The shareholders are the actual owners of a corporation who may not necessarily be directors. Because agency principles define how a corporation may conduct business through a board of directors, non-director shareholders are not at risk for the actions of the agents.