Assume that you live in the United States and invest $$100,000$ to establish a computer and social media literacy business, World Technology, Inc., in Mexico City, Mexico. Although your business is structured as a corporation, you initially hold all of the common stock in the firm. Your Mexico City facility has an office and an attached training area, which you lease from a local property owner in Mexico City. You hire local individuals in Mexico who are bi$-$lingual in both Spanish and English to teach full$-$time at your training facility. Your training facility offers two types of courses: $1)$ A one$-$month structured course; and $2)$ a one$-$week intensive course. You advertise both types of courses to potential customers.

All revenue and expenses associated with your business are denominated in Mexican pesos. Your subsidiary sends most of the profits from the business in Mexico to you at the end of each month. Although your expenses are somewhat stable, your revenue varies with the number of clients who sign up for the courses in Mexico.

The Mexico City location of your business performs very well during its first year of operations. You then plan to expand your Mexico City business location. To fund this expansion, you sell $50,000$ shares of stock in your business, World Technology, Inc., to the general public.

Based on the above information, please answer the following questions:

Describe the type$($s$)$ of agency problems facing your business in Mexico City.

a$.$ What type of compensation plan might you use for the employees at the Mexico City location to limit the potential agency problems?