Which of the Following Statements Is True

question 4

Multiple Choice

Which of the following statements is true?

• A)Agency costs arise whenever economic agents enter into a contract in a world of incomplete information.
• B)Monitoring costs are part of overall agency costs.
• C)The more difficult and costly it is to collect information, the more likely it is that contracts will be broken.
• D)Agency costs arise whenever economic agents enter into a contract in a world of incomplete information, monitoring costs are part of overall agency costs and the more difficult and costly it is to collect information, the more likely it is that contracts will be broken.

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Definitions:

Visual Aid

Any visual element like charts, graphs, or images, used to enhance the understanding of information.

Significance

The importance or relevance of something, often in terms of its impact or consequences.

Promotional Presentation

A visual and oral presentation aimed at marketing a product, service, or idea to an audience.

Infographics

Visual illustrations used to communicate detailed information, data, or knowledge in a clear and rapid way.