The double-loaded slab guestroom floor configuration features:
a. rooms on both sides of a central corridor
b. rooms grouped around a central vertical core
c. rooms off a corridor encircling a mulit-story lobby space
d. rooms off one side of a corridor
Answer: a. rooms on both sides of a central corridor
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The manager of Golden Ray Corporation receives a bonus if company profits exceed $1,000,000 this year
During the final week of the year, the manager changes an accounting policy that will increase reported profits from $950,000 to $1,025,000, triggering his bonus. The change in profits of $75,000 will reverse itself in the next year, and the accounting change has no impact on Golden Ray's cash flow. Discuss the above situation as it relates to both an agency problem and efficient markets.