Multiple Choice
Which of the following is true about outcome-oriented principal-agent contracts?
A) The principal must monitor with little cost what the agent has done.
B) When profits drop, agent's compensation goes up.
C) Agents do not demand compensating wage differentials in such contracts.
D) Agents face minimal risks in such contracts.
E) The interests of the company and employees are aligned in such contracts.
Correct Answer:
Verified
Correct Answer:
Verified
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