Which one of the following statements is TRUE?

a. An example of an agency cost is when the board of directors pays a dividend to shareholders.

b. An example of an agency cost is when an attorney hires an expert witness for a trial.

c. The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost.

d. Asset switching occurs when a company borrows money for a safe investment but uses it for a risky investment.

e. An example of an agency cost is the salary of the agent hired to work for the principal.