A Contract That Makes a Manager's Salary Dependent on Total

question 2

True/False

A contract that makes a manager's salary dependent on total profit would be a type of incentive-compatible contract.

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Definitions:

MD

An abbreviation for Doctor of Medicine, a professional doctoral degree for physicians and surgeons.

FMS

Fibromyalgia Syndrome, a chronic disorder characterized by widespread musculoskeletal pain, fatigue, and tenderness in localized areas.

Flexes

The action of bending a limb or muscle.

Rotates

The action of moving or turning around a central axis or point.