An Over-Investment Problem Means That Shareholders Have an Incentive to Invest

question 54

Multiple Choice

An over-investment problem means that shareholders have an incentive to invest in risky ________ projects.

• A) positive-NPV
• B) negative-NPV
• C) zero-NPV
• D) none of the above

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Definitions:

Narcissistic Personality Disorder

A mental condition characterized by a long-term pattern of exaggerated self-importance, need for admiration, and lack of empathy.

Histrionic Personality Disorder

A personality disorder characterized by a pattern of excessive emotionality and attention-seeking behavior, including an intense need for approval and inappropriate seductiveness.

Antisocial Personality Disorder

A mental health condition characterized by a long-term pattern of manipulating, exploiting, or violating the rights of others.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and control, without the presence of true obsessions and compulsions found in OCD.