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which of the following statements are mostly likely correct? direct agency costs occur when a manager, acting to minimize the risk of the firm and

which of the following statements are mostly likely correct?

  1. direct agency costs occur when a manager, acting to minimize the risk of the firm and thus her job uncertainty, foregoes investments shareholders would prefer she takes
  2. direct agency costs occur when shareholders must incur costs to monitor the manager's actions
  3. Direct agency costs occur when a manager buys assets considered unnecessary for the firm's owners to benefit herself.

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