(Solution) - Which of the following are characteristic of principal agent con -(2025 Original AI-Free Solution)

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Which of the following are characteristic of principal?agent conflicts that often exist in a firm?
(Note: The entire statement must be true in order to be a correct answer.)
a. Managers do not always operate in the best interest of owners because owners are generally more risk averse than managers.
b. Managers generally have a shorter time horizon than owners; thus, managers do not fully take into account the future long-run profitability of the firm.
c. Managers do not always operate in the best interest of owners because managers care about the non-cash benefits of their jobs.
d. Firms can usually find solutions that reduce agency costs without increasing monitoring or bonding costs.