Why are agency relationships a concern?

	A.	Agents often perform hostile take-overs of the company for which they work
	B.	Agents may act in their own self-interest instead of the interest of the principal
	C.	Using agents to run a company is illegal if it is a public company
	D.	All of the above are reasons we care about agency relationships

In a public company, who bears part of the cost of managers perks?

		The founder
		The board of directors
		The public
		The shareholders

What is a restrictive covenant?

	A.	It is a method of securing the loan with companys assets
	B.	It is an addition to the loan/bond contract that places limitations on what the lender can do.
	C.	It is an addition to the loan/bond contract that places limitations on what the borrower can do.
	D.	It is a special type of loan/bond that allows the lender to call in the loan if the borrower acquires too much debt.