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:

Local Potential

Changes in the electric potential of a neuron's membrane that are confined to a small area, unlike action potentials that can spread.

Neurotransmitters

Chemicals released by nerve cells to transmit signals across a synapse to another nerve cell, muscle cell, or gland cell.

Synaptic Cleft

Space between the presynaptic and the postsynaptic membranes.

Postsynaptic Membrane

The part of the cell membrane of a neuron that is on the receiving end of a synapse, where neurotransmitter receptors are located.