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Consider a small company run by a manager who is also the owner. If this company borrows funds, why might a moral hazard problem still

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Consider a small company run by a manager who is also the owner. If this company borrows funds, why might a moral hazard problem still exist? With an owner/manager, there is an incentive to take on ((Click to select) The (Click to select) is limited to the collateral posted while the (Click to select) is unlimited. All the profits above the loan repayment go to the (Click to select) Consider a small company run by a manager who is also the owner. If this company borrows funds, why might a moral hazard problem still exist? With an owner/manager, there is an incentive to take on ( insufficient risk The downside is limited to the collateral posted while the (Click to select) is unlimited. All the profits above the loan repayment go to the ( (Click to select)

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