Question

Maggie has an evening janitorial job. she sometimes takes a book to work and reads when she should be working. this is an example of the​ ______ problem.

Answer 1

The answer is: the principal-agent problem.

The principal-agent problem refers to a situation when the action/decision made by a single individual could affect the whole organization where that individual belong.

By reading the the book and neglecting the job, Maggie could tarnish the reputation of the janitorial company where she works. This could make the whole company receive less order in the future.

Answer 2

This is the principal-agent problem. This occurs when an individual is able to make decisions or choices that impact others at the company or in fact the company as a whole.