The shareholder of Al-Karam wants to maximize his profits by selling his goods in larger quantities. In order to achieve his target (s), he hired a manager to look after his business. However, the manager instead of maximizing business profits started maximizing his own interest by selling the designs in black to the competitor’s designers. Analyze the above situation and explain the possible problem that might occur for Al-Karam?
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Gross Domestic Product (GDP) at Market Price (MP) = Private Final Consumption Expenditure (+) Private Final Investment Expenditure (+) Government Final Expenditure (+) Net Exports.
NDP at MP = GDP at MP (+) NFIA [Net Factor Income from Abroad]
NDP at FC =
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