Which of the following statements is MOST CORRECT in describing features of agency according to Jensen and Mecklings agency theory?

a.

Monitoring costs will be lower where agents demonstrate low bonding and where principals are physically remote.

b.

Principals are likely to be harmed where low bonding costs and low monitoring costs exist within an agency relationship.

c.

Information asymmetry means that principals usually will have greater knowledge than agents and this explains why agents are considered to engage in self-seeking behaviour.

d.

A highly bonded agent will require high levels of remuneration as bonding costs will be high.