Which of the statements regarding agency costs is true

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Problem 1: Which of the following statements regarding agency costs is true?

Option 1: They are higher in sole proprietorships as compared to corporations.

Option 2: They can be reduced by offering ownership in the form of common shares to corporate managers.

Option 3: They only occur between managers and common shareholders.

Option 4: None of the above.

Reference no: EM132952477

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