One Way a Manager Can Reduce an Agent's Risk Is

question 1

Multiple Choice

One way a manager can reduce an agent's risk is to tie:

• A) penalties more closely to the agent's effort.
• B) bonuses more closely to the agent's sales.
• C) rewards more closely to the actions that the agent can control.
• D) pay directly to past performance.

---

Definitions:

Square Inches

Square inches are units of area measurement equal to the area of a square with sides one inch in length.

Base

The number that is repeatedly multiplied by itself when raised to an exponent, or the bottom side of a geometric figure.

Simplify

The process of altering an expression or equation to make it easier to understand or solve, usually by combining like terms or removing parentheses.

Average Cost

The total cost divided by the number of goods produced, calculating the cost per unit of goods.