QUESTION $7$

$10$ points

Which one of the following is $($an$)$ example$($s$)$ of agency problem?

A$.$ Although your financial advisor realizes that buying a fund and holding it for many years is the best strategy, he constantly advises you to buy and sell different stocks so that he can earn higher comission fees.

B$.$ You hired a manager to run your firm. Although the manager realizes that adopting a customer service softwartscan greatly reduce the operating cost and improve management efficiency, your manager refuse to do so because he does not want to take the effort to learn the new technologies.

C$.$ The CEO of a firm fabricate the revenue by $40\%$ more.

D$.$ All of the above