4The principle-agent model can explain non-profit maximization in firms. Which of the following describes this model well? a) Managers, the agents, act irrationally or with bounded rationality. b) Shareholders (principles) act irrationally or with bounded rationality. c) Principles, interested in revenue maximization, force managers, their agents, to maximize revenue and growth. d) There is asymmetric information between the shareholders (principals) and managers (agents) in terms of the managers' actions. e) None of the above.

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