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A divisional manager makes a risky decision to gain a promotion knowing full well that if the decision proves a bad one that he or

A divisional manager makes a risky decision to gain a promotion knowing full well that if the decision proves a bad one that he or she will not bear the full cost.

This is an example of what type of agency cost?

a.Shirking

b.Moral hazard

c.Stealing

d.none of the above

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