Choice "C" is correct. The premise of behavioral corporate finance is the idea that behavioral characteristics of managers (such as overconfidence or excessive optimism) will distort management judgment.
Choice "a" is incorrect. Behavioral corporate finance is focused on human behavior, not cost behavior.
Choice "b" is incorrect. Behavioral corporate finance is focused on human behavior, not entity behavior.
Choice "d" is incorrect. Behavioral corporate finance recognizes that finance can be quantitative and objective but also recognizes that it can be driven by emotion.
