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What is the main way in which firms follow the owner- control argument and distribute a high proportion of earnings, and so reduce the principal- agent problem?
Farmer
An individual engaged in the practice of agriculture, raising living organisms for food or raw materials.
Percentage-Of-Completion Method
An accounting technique used in long-term contracts, recognizing revenue and expenses based on the project's estimated completion level.
Revenue
The total income generated from normal business operations and before any costs or expenses are deducted.
Progress Payments
Payments made on a contract in advance of the final delivery, typically based on the completion of certain stages or milestones within the project.
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