
David and Fred are customer care employees at JPN Care. In between calls, David and Fred spend time on Facebook and YouTube. The relaxed guidelines at JPN allow them to do that. However, sometimes, they knowingly avoid answering calls or keep customers on hold, while they check their social networking accounts. Such behavior
A) is neither unlawful nor unethical; hence, David and Fred cannot be reprimanded.
B) typically exemplifies the agency problem of adverse selection.
C) demonstrates the dangers of information asymmetry.
D) can be stopped by implementing performance incentives and strict control mechanisms.
Correct Answer:
Verified
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