Pick N Shop Inc. operates a chain of supermarkets. The company offers a bonus of $500 to its sales representatives if they can sell products worth $5,000 per month. It also offers bonuses and other benefits to its employees and managers. By offering such bonuses, Pick N Shop Inc. is primarily trying to avoid a(n)________.

Question

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By offering bonuses, Pick N Shop Inc. is trying to align the interests of its employees and managers with the company's goal of maximizing sales and revenue. This helps to avoid agency problems where employees may act in their own self-interest rather than in the interest of the company. Hostile takeovers, proxy fights, and accountability problems are unrelated to the situation.