Which of the following may result from the possibility of financial distress?

Insurers will be less likely to offer services like claims processing.

Owners may not want to invest their own money in some positive net present value projects, because a significant part of the returns from the new project might accrue to other claimants like bondholders.

The incentive to adopt risky bad projects, known as the underinvestment problem.

The incentive to pass up good projects, known as the overinvestment problem.