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Which of the following is a characteristic of principal-agent conflicts that often exist in a firm? a) Managers do not always operate in the best

Which of the following is a characteristic of principal-agent conflicts that often exist in a firm?

a) Managers do not always operate in the best interest of owners because owners are generally more risk averse than managers.

b) Firms can usually find solutions that reduce agency costs without increasing monitoring or incentive costs.

c) Managers do not always operate in the best interest of owners because managers care about the noncash benefits of their jobs.

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