USCA Oil is a privately-held firm, owned by three families. They have two plants in the US (one in Dallas and one in Indianapolis) and one plant in Canada (Edmonton). They also have acquired a small lab in Grand Rapids, Michigan. Except for one item, all the items below can potentially cause a principal-agent problem. Choose the item that does not cause such a problem. 1. Expanding their NPD group, the managers in Indianapolis plant are hiring two highly educated engineers. 2. The manager of the Dallas plant is hiring a new HR Director. 3. To organize lab operation in Michigan, the owners have asked the previous manager of the Edmonton's plant to become the manager of their newly-acquired lab. 4. One of the owning families plans to sell half of its existing stocks to the other two families, with equal shares.

USCA Oil is a privately-held firm, owned by three families. They have two plants in the US (one in Dallas and one in Indianapolis) and one plant in Canada (Edmonton). They also have acquired a small lab in Grand Rapids, Michigan. Except for one item, all the items below can potentially cause a principal-agent problem. Choose the item that does not cause such a problem. 1. Expanding their NPD group, the managers in Indianapolis plant are hiring two highly educated engineers. 2. The manager of the Dallas plant is hiring a new HR Director. 3. To organize lab operation in Michigan, the owners have asked the previous manager of the Edmonton's plant to become the manager of their newly-acquired lab. 4. One of the owning families plans to sell half of its existing stocks to the other two families, with equal shares.