The Following Are Agency Problems Associated with Capital Budgeting

question 13

Multiple Choice

The following are agency problems associated with capital budgeting:

• A)reduced effort, perks or private benefits, and avoiding risks.
• B)reduced effort, perks or private benefits, and entrenching investments.
• C)reduced effort, perks or private benefits, empire building, and entrenching investments.
• D)reduced effort, perks or private benefits, empire building, entrenching investments, and avoiding risks.

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Definitions:

Hemichannel

A type of membrane channel that allows the exchange of ions and small molecules between the intracellular space and the extracellular environment.

Gap Junction

Area of contact between adjacent cells in which connexin proteins in each cell form connecting hemichannels, which, when open, allow ions to pass between the two cells; also called an electrical synapse.

Interneuronal Communication

The transfer of information between neurons within the nervous system, facilitating brain and body functions.

Gap Junctions

Specialized intercellular connections that facilitate direct electrical and chemical communication between cells.