Herb and betty cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company's regular suppliers. the products were sent only to one restaurant and herb and betty weren't aware of the problem until two customers became ill. why hadn't the chef reported the tainted food? he didn't see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. he was, of course, wrong. subsequently, kari, a waitress, overheard herb and betty discussing the problem and was ready to report them to the authorities if they didn't take responsibility for their chef's actions. of all the people involved in this business, who most needs ethics counseling?

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game. expert answer