18. On a recent business trip to San Diego, the Sales Manager of Nationwide Pharmacies decided to order the lobster dinner, rather than the more affordably-priced spaghetti dinner, reasoning that the cost of the dinner would be covered by his expense account. The excess cost of the lobster dinner is an example of an "agency cost" in the conflict between the firm's A bank and the Federal Reserve. B. stockholders and its creditors. C. stockholders vs. one of the firm's hired managers. D. none of the above. 19. Each of the following is a characteristic of the "modern corporation" EXCEPT A international operations in three or more countries. B. many shareholders, none who own a controlling interest in the company. C. decision-making delegated by shareholders to an elected Board of Directors D. potential agency conflict between shareholders and the corporation's hired managers. 20. A corporation's specify(s) whether the firm's entire Board of Directors is elected annually, or if Directors have staggered terms. A Proxy Statement B. Corporate By-Laws C. Audit Statement D. Income Tax Retum 21. Each of the following is a type of long-term financing that a corporation may use EXCEPT A a mortgage from the firm's bank to fund the firm's manufacturing plant. B. preferred stock shares common stock shares D. deferred taxes DI