Which of the Following Is a Possible Disadvantage of a Tournament

question 16

Multiple Choice

Which of the following is a possible disadvantage of a tournament?

• A) Competitors have little incentive to help one another (and they may even sabotage each other's work).
• B) Workers will stop providing effort as soon as they believe they have no chance to win the prize.
• C) Workers may collude to share the prize in order to provide lower levels of effort.
• D) The outcome of a tournament may appear to be random.
• E) All of the above are possible disadvantages of a tournament.

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Definitions:

Percentage-of-Completion

An accounting method typically used in long-term contracts, recognizing revenues and expenses in proportion to the work completed during the period.

Installment

A method of paying for goods or services or the repayment of a loan in parts, typically on a monthly basis, over a period of time.

Cost Recovery

The process of regaining the value of an investment or expense, often through depreciation, amortization, or directly recouping expenses.

Gross Profit

The financial metric that represents the difference between revenue and the cost of goods sold (COGS) before deducting overhead, payroll, taxation, and interest payments.