Which of the Following Is a Problem That Could Be

Multiple Choice

Which of the following is a problem that could be raised by the fact that entrepreneurs have information about their business opportunities that investors don't have?

A) Investors have to make decisions based on limited information.
B) Since entrepreneurs have superior information, they can use it to obtain capital from investors and use it for their own benefit.
C) The existence of adverse selection.
D) A and C only.
E) A, B, and C.