The Securities and Exchange Commission (SEC) charges the Able Baker Co. (ABC) with violating an administrative rule regarding the sale of securities. ABC did not realize that in its search for capital it became subject to securities regulation. ABC may attempt to settle the case rather than proceed to litigation, because

a. a settlement can be more complex than litigation.
b. a settlement will be more costly for the agency.
c. a settlement is less costly than litigation.
d. it does not want to cooperate with the SEC.

Answer: c. a settlement is less costly than litigation.