Francesca Owns a Small Clothing Business in Victoria

Francesca owns a small clothing business in Victoria.She travels a lot,meeting with important customers,attending fashion shows,and the like.Francesca hired Renaldo to work in the Victoria office as the day-to-day general manager of the business.Which statement best characterizes this principal and agent problem

A) There is an adverse-selection risk in that perhaps Renaldo will not work as hard as Francesca would like.
B) With respect to the potential risk involving Francesca and Renaldo, Francesca is the principal and Renaldo is the agent.
C) It is common for employers such as Francesca to pay managers such as Renaldo below-equilibrium wages and salaries because they know managers shirk their responsibilities.
D) Renaldo may withhold information from Francesca, creating a moral hazard problem.