Bala - Solutions manual - posted on BB (2)

Bala - Solutions manual - posted on BB (2) - 1.58 a....

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1.58 a. Casinos monitor their employees because of the divergence between its goals and its employee’s goals. The casino’s goal, which is to maximize profit, is at odds with employees’ goals, which is to maximize their personal wealth. Without monitoring, employees would be tempted to increase their own wealth by stealing money and chips. Such concerns are particularly salient in casinos because employees handle large sums of money and, without monitoring, could easily hide the theft by simply claiming that a patron was lucky and won the money. Casinos therefore monitor their employees to reduce losses associated with employee theft. Casinos can use both proactive and reactive controls to reduce this loss. Proactive controls include video surveillance, physical monitoring by floor supervisors and pit bosses, lock and key devices for slot machines, safe-keeping of high-value chips by sliding them into a locked cabinet, tracking gains and losses and comparing them to peer data, and using background security checks. Reactive policies could include firing or prosecuting employees caught
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This note was uploaded on 12/17/2010 for the course ACC 02320 taught by Professor Devidal during the Fall '09 term at University of Texas.

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Bala - Solutions manual - posted on BB (2) - 1.58 a....

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