Final answer:
Managers not owning the company are considered agents, working under the direction of the shareholders who use their voting rights to select a board of directors.
Step-by-step explanation:
If the managers of a company are not the owners of the company, they are considered agents. Managers are employed by the shareholders who own the company to run it on their behalf. The shareholders cast votes for a board of directors, who then hire top executives to manage the company's daily operations. The influence of executives in choosing board candidates, despite the board's role in expressing shareholders' interests, underscores the internal dynamics of corporate governance.