Which of the following is not a characteristic of principal-agent conflict that exists in a firm? A

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Which of the following is not a characteristic of principal-agent conflict that exists in a firm?

A. Firms can usually find solutions that reduce agency costs without increasing monitoring or incentive costs.

B. Managers do not always operate in the best interest of owners because managers care about the non-cash benefits of their jobs.

C. Managers generally have a shorter time horizon than owners; thus managers do not fully take into account the future long-run profitability of the firm.