Which of the following is NOT considered an Agency Problem?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Which of the following is NOT considered an Agency Problem?
Multiple Choice
The 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.
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