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Which of the following statements is TRUE regarding diversification as an example of the principal-agent problem? A. Product diversification usually decreases the size of the

Which of the following statements is TRUE regarding diversification as an example of the principal-agent problem?

	A.	Product diversification usually decreases the size of the firm.
	B.	Shareholders tend to prefer product diversification less than executives do.
	C.	Product diversification may increase executives employment risk.
	D.	Product diversification may decrease executive compensation.

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