Which of the following is NOT considered an Agency Problem?Multiple ChoiceThe Chairman of the Board decides to throw his wife a lavish birthday party in Tahiti using company funds.A salesperson stops working after the commission payout has hit her annual limit.A manager makes a bad decision, but he has nothing to gain personally from it.The CEO of a company uses the company's jet for personal (non-business-related) travel.A purchasing manager passes up on a positive NPV project because he feels that his job will be in jeopardy if the project fails.

The correct answer is: (B) A salesperson stops working after the commission payout has hit her…

Answered: Which of the following is NOT…

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter8: Subprime Lending Fiasco-ethics Issues

Section: Chapter Questions

Problem 8.1EC

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Which of the following would be best considered to be an agency conflict problem in the behavior of the following financial managers? pack to later. O A. Bill chooses to pursue a risky investment for the company's funds because his compensation will substantially rise if it succeeds. O B. Sue instructs her staff to skip safety inspections in one of the company's factories, knowing that it will likely fail the inspection and incur significant costs to fix. OC. Michael chooses to enhance his firm's reputation at some cost to its shareholders by sponsoring a team of athletes for the Olympics. O D. James ignores an opportunity for his company to invest in a new drug to fight Alzheimer's disease, judging the drug's chances of succeeding as low. stv MacBook Air DII DD 888 F9 20 F7 F8 F6 F5 F4 esc F2 F3 F1 &
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Appointing a person as your agent via a power of attorney can be extremely important and practical for managing one's financial affairs. This is especially true if someone is away for a significant amount of time (such as on a deployment). However, the person who is appointed as the agent can wreck the principal if bad decisions are made. What qualities should you look for when appointing someone as an agent via a power of attorney and/or a durable power of attorney?
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