This paper explores how the structure of a company's ownership affects how it is managed. The authors blend ideas from agency theory, property rights theory, and finance theory to explain ownership dynamics in firms. They look at agency costs, which are the expenses incurred when managers make decisions that may not align with the best interests of the owners. The study examines how different types of financing like debt and equity can influence these costs and how they are handled. The authors also redefine what a firm is and discuss the complexities of issuing debt and equity. The research suggests that in public companies, where managers handle money from shareholders, they may not always act as responsibly as private partners who own their businesses, potentially leading to mismanagement and wastefulness.