11. A corporation may incur agency costs because: A. Managers may not attempt to maximize the value of the firm to shareholders. B. Shareholders incur monitoring costs. C. All of the responses are...

11. A corporation may incur agency costs because:

A. Managers may not attempt to maximize the value of the firm to shareholders.
B. Shareholders incur monitoring costs.
C. All of the responses are correct.
D. Of the separation of ownership and management.

12. A firm's investment decision is also called its

A. liquidity decision.
B. financing decision.
C. leasing decision.
D. capital budgeting decision.

13. A corporation, potentially, has infinite life because it

A. has the same ownership and management.
B. is a legal entity.
C. is closely regulated.
D. has limited liability.