1.Your food service firm has large amounts of debt that it will likely be unable to pay, and management just decided not to renew a modestly but reliably profitable contract with the local school district. This is likely because:

a.Bondholders would prefer that the firm liquidate

b.Shareholders don't want to pay the upfront costs if most of the profits will go to bondholders

c.Bondholders would prefer a high risk, high reward project

d.The incentives of shareholders and managers no longer align