Exam 3: Agency and Coordination

What is one way insurers address moral hazard (hidden action)problems to align the interest of the insured with the insurer?

Given an employee cost of effort function (where e is given in hours worked per week and each unit of e produces an extra $100 in sales): c(e)= 0 if e<=40 (1/3)*(e-40)² if e>40 If the firm offers a salary-plus-commission job of $400 per week (instead of $500)plus 20% of sales,at what effort level does the employee maximize their payoff?

What factor has prevented managers from offshoring more complex IT functions for U.S.companies?

Which of the following is a tool a firm can use to combat agency problems?

Given an employee cost of effort function (where e is given in hours worked per week and each unit of e produces an extra $100 in sales): c(e)= 0 if e<=40 (1/3)*(e-40)² if e>40 If the firm offers a salary-plus-commission job of $500 per week plus 20% of sales,what is the employee's marginal benefit of effort? How much more will the employee work than the standard 40 hour work week? What is the employee's actual salary when they work to maximize their payoff?

How does a centralized organization solve coordination problems?

How does Goldman Sachs as a firm manage issues around hidden information and hidden action of the firm's traders (agents)?

Which of the following factors is a way that companies can combat agency problems around commission based incentives?

Which of the following solutions has addressed coordination problems in the tin market?

Given an employee cost of effort function (where e is given in hours worked per week and each unit of e produces an extra $100 in sales): c(e)= 0 if e<=40 (1/3)*(e-40)² if e>40 What is the cost of effort for a 37 hour week? What is the cost of effort for a 43 hour week? If the firm offers a salary only job of $500 per week,what is the employee's payoff net of effort costs for a 49 hour work week?

Given an employee cost of effort function (where e is given in hours worked per week and each unit of e produces an extra $100 in sales): c(e)= 0 if e<=40 (1/3)*(e-40)² if e>40 If the firm offers a salary-plus-commission job of base salary plus 20% of sales,what is the minimum base salary the firm can offer the employee and still have the employee willing to accept the job over a simple $2000 per week salary job?

Which of the following is not a reason Yahoo! CEO Jerry Yang as an agent would turn down Microsoft's takeover offer?

Which of the following management actions reflects agency problems due to the fact that information held by the agent is hard to observe?

Which of the following is not a performance based incentive?

What type of organizational structure is typically used in planning courses for an MBA program?

What term describes situations in which aspects of the productive environment that are important to the principal cannot be observed?

At what level of effort does performance based pay in the form of salary-plus-commission yield the maximum payoff to an employee?

How are the coordination problems that exist around the construction of a new home generally solved?

What term describes situations in which the aspects of the agent's action that are important to the principal cannot be observed?

Which of the following is not a principal/agent relationship?