Which of the following statements is true? - 547

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Which of the following statements is true?

 A.  A call option analyzes conflicts of interest and behavior in a principal-agent relationship.

 B.  The difference between the value of one action and the value of the best alternative is called an opportunity cost.

 C.  An agent-manager can never make bad decisions.

 D.  A security is a claim issued by a firm that pays owners interest but not dividends. 

Solution Description

Which of the following statements is true?