Which of the Following Is One of the Two Conditions

Multiple Choice

Which of the following is one of the two conditions that lead to a moral hazard problem?

A) the principal possesses more information than the agent
B) the agent has an incentive to pursue goals and objectives that are different from the principal's
C) the principal acts in his own best interest, as opposed to the interests of the other stakeholders
D) the agent is given the authority to allocate scarce organizational resources