The Agency Problem is an important concept in finance. Which of the following are true statements regarding the Agency Problem?

a. The Agency Problem arises when shareholders (or Principals) hire managers (or Agents) to run their firm on behalf of the shareholders.

b. A direct agency cost occurs when managers spend corporate funds on things that benefit the manager, not the shareholder.

c. An indirect agency cost arises when managers decline to take on high risk, high return projects due to the personal cost to the manager.

d. All of the above are true statements