Which of the following statements is correct? A) Agency problems partly arise because of imperfect information and risk aversion. Agency costs thus can be reduced by improving the flow of information and by reducing risk borne by the managers. B) Agency problems partly arise because of imperfect information and risk aversion. Agency costs thus can be reduced by restricting the flow of information and by reducing risk borne by the managers. C) Agency problems partly arise because of imperfect information and risk aversion. Agency costs thus can be reduced by improving the flow of information and by reducing risk borne by the principals. D) None of the above.