Which of the Following May Make Weak Incentives Mutually Profitable

question 14

Multiple Choice

Which of the following may make weak incentives mutually profitable for both owner and sales staff of an auto dealer?

• A) If the sales staff is better able than the owner to bear the risk of a recession.
• B) If the owner is better able than the sales staff to bear the risk of a recession.
• C) If the owner and sales staff can equally bear the risk of a recession.
• D) If neither the owner nor the sales staff has to bear the risk of a recession.

---

Definitions:

Identity Status

A concept in psychology that categorizes the process of identity development in adolescents into different statuses based on their exploration and commitment to values, beliefs, and goals.

Mark

A symbol, sign, or indication of something; in an academic context, it often refers to a grade or score.

Identity Diffusion

Identity status, described by Marcia, that is characterized by absence of commitment and lack of serious consideration of alternatives.

Adolescents

Individuals in the transitional stage of development between childhood and adulthood, typically between the ages of 13 and 19.