Which of the following difficulties arise as a result of information asymmetry? Please select all that apply.
A) Shareholders are only as well informed as the directors allow.
B) Shareholders' interests are subordinated to those of the directors.
C) Shareholders cannot be certain that the annual financial statements present the full picture of the company's profits, cash flows and financial position.
D) Shareholders lack the necessary information to be able to be certain that the company is being run honestly, ethically and in accordance with the law.
Correct Answer:
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