One Reason That the Principal-Agent Problem Is a General One

Multiple Choice

One reason that the principal-agent problem is a general one in equity contracts is that

A) most uses of corporate funds are highly visible.
B) many uses of corporate funds are hidden from view.
C) since top management usually also owns the bulk of the firm's stock, it has little incentive to respond to the wishes of the remaining shareholders.
D) the Securities and Exchange Commission does a poor job of detecting fraud by top management.