The Conflict Resulting from a Manager's Desire to Increase a Firm's

question 71

Multiple Choice

The conflict resulting from a manager's desire to increase a firm's risk without increasing current borrowing costs and lenders' desire to limit lending is one effect of the ________ problem.

• A) agency
• B) leverage
• C) capital
• D) variable cost

---

Definitions:

Leaching

The process by which soluble materials are washed out from soil or wastes, often leading to contamination of waterways.

Nitrate Ions

An anionic form of nitrogen (NO3-) found in soil and water, often resulting from agricultural runoff, and crucial to the nitrogen cycle.

Phosphorus Reservoirs

Natural or artificial storage places for phosphorus, an essential nutrient for plants and animals.

Nitrogen Fixation

Nitrogen fixation is a process by which nitrogen gas from the atmosphere is converted into ammonia or related nitrogenous compounds in soil, making nitrogen accessible to living organisms.