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    Exam 21: Economics, Ethics, and Public Policy
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    One Way a Manager Can Reduce an Agent's Risk Is
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One Way a Manager Can Reduce an Agent's Risk Is

Question 1

Question 1

Multiple Choice

One way a manager can reduce an agent's risk is to tie:


A) penalties more closely to the agent's effort.
B) bonuses more closely to the agent's sales.
C) rewards more closely to the actions that the agent can control.
D) pay directly to past performance.

Correct Answer:

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