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Hong Kong, which is renowned as Asia's culinary capital, is home to more than 11,000 eateries, many of which are grouped together in designated food districts. Cantonese cuisine and other regional Chinese cuisine are served to locals and tourists in thousands of Chinese restaurants.

Question:

Maxim Palace: https://www.maxims.com.hk/en/about/cat_01_a.asp

1(a) Describe the principal-agent problem.

1(b) Identify and describe ONE potential principle-agent problem at two distinct organizational levels that it may confront using the Maxim Palace, one of the biggest Chinese restaurants in Hong Kong, using examples.

1(c) Explain how the Maxim Palace could be adversely affected by two identified principal-agent problems.

1(d) Suggest and explain ONE possible solution for each of the identified problems.