19. Which one of the following are examples of agency problems?

I. Andreas, a chief financial officer, travels to France to meet with the bank that is loaning (SavEiZel) the firm money to build a factory in France. He travels to France with the private jet of the company and while there he goes for dinners at luxury restaurants with his French girlfriend. The company pays all his expenses in France.

II. Mike, a president of a company, travels to China to attend an international convention related to the company's line of business. While there, he tours the Great Wall of China because he has never been there before.

Ill. Louisa, a chief executive officer, has to decide of the best investment to make. She has to choose between two positive NPV investments. She chooses the one wit the lower NPV (which is still positive NPV) since she believes that this investment is very close to her expertise and experience and she will manage it very effectively, increasing the long run returns of this investment.

IV. Tina, a chief executive officer of an automobile firm (autokvntolounyavia), is in a dilemma between two growth strategies. The one is to make an investment in machinery that will enhance productivity by 459 and the other one is to diversify into the industry of electronics. She decides to diversify operations since COVID-19 brings a lot of uncertainties and she wants to ensure that if the automobile industry does not do well, the electronics industry will.

O a. I and Il only O b. Ill and IV only O c. all of these are examples of an agency problem O d. l only O e. I, lIl, IV only