ABC, Inc. sells their automobiles in many countries around t…

ABC, Inc. sells their automobiles in many countries around the world. ABC clearly understands that the performance and safety preferences of customers varies from one country to another. Thus, its vehicles are changed to meet local needs and preferences of customers, even though the costs incurred for making these automobiles are extremely high. This strategy helps the firm compete as a local firm in any foreign market. Which of the following strategies does ABC most likely follow?

ABC, Inc. hires Dan to deliver their product to retail locat…

ABC, Inc. hires Dan to deliver their product to retail locations. During deliveries, Dan often takes naps or surfs the internet on his phone. He tells his senior manager that each delivery took more time to cover his lack of work effort. ABC, Inc.’s stockholders are unaware of this situation. In the context of a principal-agent problem, this is known as:.