Multiple Choice
When managers do not own very much of the net worth of the firm, then
A) there may be a principal-agent problem.
B) the firm will usually have to raise most of its funds in financial markets.
C) the firm will have to rely more on equity financing than debt financing.
D) the firm will have to rely more on debt financing than equity financing.
Correct Answer:
Verified
Correct Answer:
Verified
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