Which Statement Is Correct About "Agency Cost of Leasing

question 72

Multiple Choice

Which statement is correct about "agency cost of leasing"?

• A)The lease payments are lowered to compensate for the agency cost of leasing.
• B)Shorter lease terms decrease the agency cost of leasing.
• C)Agency cost of leasing is an illustration of the "moral hazard" problem.
• D)Agency cost of leasing is an illustration of the "adverse selection" problem.

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