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1. Agency costs occur when a principal do something that increases her own utility at the expense of an agent's utility. A question requiring a 'True/False' answer.(Required) True False 2.A conflict of interest between the stockholders and board of directors of a firm is referred to as the agency cost of equity. A question requiring a 'True/False' answer. (Required) True False 3. Separation of ownership from control leads to potential agency costs. A question requiring a 'True/False' answer.(Required) True O False 4. Information Asymmetry is often held as the cause of many agency problems. A question requiring a 'True/False' answer.(Required) True False 6. Which of the following devices can be used to mitigate agency cost? A multiple-choice question with several possible answers.(Required) 1.0 Market for corporate control 2.0 Board of directors 3. The presence of institutional investors 4. Stock option granted to CEOs 5. Bank monitoring