The Consequences of a Purely Economic Approach to Breach of Contract

question 73

Multiple Choice

The consequences of a purely economic approach to breach of contract can result in

• A)the decision by a party to ensure that all contractual obligations are met.
• B)the decision by a party not to perform a contractual obligation.
• C)the decision by a party to breach the contract.
• D)the decision by a party to actually weigh the consequences of breach against its reward.
• E)the decision by a party to merely perform a contractual obligation.

Recognize the various methods for incentivizing employee performance, including piecemeal and hourly compensations.

Analyze the consequences of different compensation schemes during varying economic conditions.

Identify strategies to address agency costs within an organization.

Examine the components and effectiveness of a well-run incentive compensation scheme.

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