Which of the following is NOT an example of the indirect costs of financial distress a firm may incur when it borrows too much:

Select one:

a. The firm may lose valuable employees to other firms

b. The firm's management will focus primarily on staying solvent in the short-run and probably not focus on long-term strategy

c. Suppliers to the firm may not be willing to invest in a long-term working relationship with the firm for the development of new products

d. Adverse incentive problems can be created for the firm; such as creating the incentive for managers to accept high risk projects with large upside potential, even if these projects have negative NPVs

e. None of the above (all are examples of the indirect costs of financial distress)