You overhear your manager saying that she plans to book an Ocean-view room on her upcoming trip to Miami for a meeting.You know that the interior rooms are much less expensive,but that your manager is traveling at the Company's expense.This use of additional funds comes about as a result of:

Question

Quizplus · Accepted Answer

This is an example of an agency problem where the manager is using the company's funds for personal benefit rather than acting in the best interest of the company. She may be choosing a more expensive room simply because she is not directly paying for it and is not concerned about cost control.

You Overhear Your Manager Saying That She Plans to Book