What Does the Separation Theorem Demonstrate

Multiple Choice

What does the separation theorem demonstrate?

A) Firms that separate share price and cost minimize costs and thus produce more goods, which benefits society.
B) Firms should separate their management decisions between those that benefit society and those that benefit shareholders.
C) All investors are better off when firms separate their investment decisions from the preferences of their owner/investors.
D) Investors that own shares directly should be separated from investors that own shares indirectly.