Multiple Choice
A consequence of an incentive contract for employees is that
A) employees must incur additional risk
B) employee level risk is reduced
C) employer level risk is reduced
D) there are no risk related consequences
Correct Answer:
Verified
Correct Answer:
Verified
Q70: Moral hazard is a<br>A)Pre-contractual problem<br>B)Post contractual problem<br>C)Post
Q71: An incentive compensation scheme includes<br>A)a performance evaluation
Q72: If a car salesman is paid a
Q73: In a situation where an artist is
Q74: In organizational design issues,decision rights pertain to<br>A)the
Q76: Which of the following addresses agency costs?<br>A)advertising
Q77: An HVAC company is selling heating and
Q78: By switching its sales agents to a
Q79: A potential problem arises in principal-agent relationships<br>A)because
Q80: The ways to address agency costs include