Which of the following are characteristic of principal-agent conflicts that often exist in a firm? (Note: The entire statement must be true in order to be a correct answer.)

a. Managers do not always operate in the best interest of owners because owners are generally more risk averse than managers.

b. 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.

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

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