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Which of the following statements is correct? Monitoring and bonding arrangements drive agency costs to zero. Political costs are lower for larger firms. Contracts between

Which of the following statements is correct?

Monitoring and bonding arrangements drive agency costs to zero.

Political costs are lower for larger firms.

Contracts between managers and outside equity owners or debtholders will specify every accounting method that the firm will use.

Agency costs comprise monitoring and bonding costs and a residual loss.

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