Which of the agency costs refer to

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Problem 1: Agency costs refer to

a. the costs associated with managing the demands of government agencies.

b. the costs involved when converting an entity from a proprietorship to a corporation

c. the costs that arise due to conflicts of interest between shareholders and managers.

d. none of the above.

Problem 2: Managers of firms should only take actions that:

a. increase the value of the firm's future cash flows.

b. they expect will increase the firm's share price.

c. have benefits which are at least as great as the cost of those actions.

d. all of the above.

Reference no: EM132757134

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