A. It is the risk that a principal who hires or employs an agent to perform a task may find that the task is done poorly.
B. It is least likely to arise in cases where there is asymmetric information.
C. It may be reduced in the case of a company if its directors are given bonuses that relate to the company's profits.
D. It may be reduced in the case of a company if its directors fear their company may be subject to competition for corporate control.