What Is One Potential Problem with Offering a Choice of Contracts

question 105

Multiple Choice

What is one potential problem with offering a choice of contracts to two different employees?

• A) If Employee A is paid more than Employee B, Employee A might sue for discrimination.
• B) Employee A might be paid less than Employee B, proving statistical discrimination.
• C) The two employees might compare salaries without comparing risk-preferences, thereby running the risk of jealousy or claims of discrimination.
• D) The two employees might compare risk preferences without comparing salaries, thereby running the risk of jealousy or claims of discrimination.

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Definitions:

Jane's Capital

Jane's Capital refers to the amount of money or value of assets that Jane has invested in a business or enterprise.

Legal Practice

The profession and activities related to providing legal advice, representation, and services to clients.

Journal Entry

A record in accounting that notes a specific financial transaction in a company's general ledger.

Revenue

Revenue is the total amount of money earned by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.