E) The cost of providing life insurance to the firm's CFO. 8. Which of the following is/are correct regarding agency costs? I. Indirect costs occur when managers, acting to minimize the risk of the firm, forego investments shareholders would prefer they take. A) II. Direct costs occur when shareholders must incur costs to monitor the manager's actions. III. Direct costs occur when managers buy assets considered necessary by the firm's owners. I only I and II only II only II and III only I. II, and III B) C) D) E) 1190 . O SAMSUNG F3 F4 Gm F5 F7 F6 N F8 F9 F10 F11 F12 M