A Type of Agency Problem That Results in Shareholders Gaining

question 39

Multiple Choice

A type of agency problem that results in shareholders gaining by choosing not to finance new,positive-NPV projects is:

• A)asset substitution.
• B)debt overhang.
• C)excessive risk-taking.
• D)distress costs.

---

Definitions:

Sexual Harassment

Unwanted or unwelcome sexual advances, requests for sexual favors, and other verbal or physical behaviors of a sexual nature.

Retail Store Manager

An individual responsible for overseeing the daily operations of a retail store, ensuring maximized sales and profitability.

Body Type

A categorization of human physique based on the distribution of muscle and fat, often referred to as somatotypes.

Sexual Harassment

Unwanted or unwelcome sexual behavior, which can include unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.