Renowned as the culinary capital of Asia, Hong Kong boasts more than 11,000 restaurants, many of them clustered in defined food districts. Thousands of Chinese restaurants provide Cantonese and other regional Chinese food to citizens and visitors

Explain principal-agent problem. Using the Maxim Palace, one of the largest Chinese restaurants in Hong Kong, identify and explain ONE possible principleagent problem at two different organisational levels that it could encounter with examples. Explain how the Maxim Palace could be adversely affected by two identified principal-agent problems. Suggest and explain ONE possible solution for each of the identified problems.