In a paragraph, explain why each of the following is an agency problem and what costs to the firm might result

from it. Suggest how the problem might be dealt with instead of firing the individual(s) involved:

a) Dineo the front desk receptionist at ABSA, routinely takes extra 30 minutes of lunch to pick her

daughter from school and take care of her other personal errands. (5 marks)

b) Mr. Radithupa the chief executive officer of Molapo Industries, had secret talks with a competitor about

the possibility of a merger in which he would become CEO of the combined firms. (5 marks)

c) A branch manager at Home Corp lays off experienced full-time employees and customer service

positions with part-time or temporary workers to lower employment costs and raise this year's branch

profit. The manager's bonus is based on profitability