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Please complete A through D thank you!! Identifying agency problems, costs, and resolutions Expain why each of the following situabons is an agency problem and
Please complete A through D thank you!!
Identifying agency problems, costs, and resolutions Expain why each of the following situabons is an agency problem and what colts to the fem might rosult from it. Suggest how the problem might be deat with short of fring the individual(i) imolved. a. The front desk receptionist routinely takes an wxtra 20 minufes of lunch time to nas personal ertands b. Dision managers are padding cost estimates so as bo show thort term efficiency gains whon the costs come in lower than the ettimater. c. The firmis chief execulive officer has had secrnt thiks with a compostor about the possibily of a merger in which she would become the CEO of the combined fiths proft. The mianager's bonus is based on profitablity. a. The front desk receptonist routinely takes an extra 20 minutes of lunch time to run personal ermands. Which of the folowing statennents correcty bentifes the coet and possibe sotution for the agency probiem in this case? (Choose at correct responses) A. The front deek receptionits is being compensated for ungroductive time B. The compary could install a fime clock that would result in either (1) her roluring on time or (2) redueing the cost to the firm. D. The company shoild do noehing. Any atiempt to solve the problein would thely create an urhappy omployee and only make the sibuation worse Step by Step Solution
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