Corporations have been the most dominant form of business entity in economies as of date. As per law, corporations are artificial persons who have certain rights and responsibilities, similar to individual citizens. Though corporations are owned by shareholders, they exist independently of them, which imply that shareholders possess limited liability for the activities of the corporation. Managers bear the main responsibility of protecting the investment of shareholders. Thus, they are the agents of shareholders. As such, manager acts as the agent of individuals who own the corporation and it is their responsibility to act in the interests of the shareholders.