Under Which One of the Following Contracts Does an Agent

question 17

Multiple Choice

Under which one of the following contracts does an agent have the least incentive to behave opportunistically?

• A) The agent pays a fixed fee to the principal for the right to all future payoffs.
• B) The agent works for the principal on an hourly basis.
• C) The agent receives a share of the profit.
• D) The agent works for the principal on a per unit basis.

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Definitions:

U.S. Discrimination Laws

Laws that prohibit discrimination on the basis of race, color, religion, sex, national origin, age, disability, or genetic information.

Foreign Country

A foreign country is a nation with sovereignty and territorial boundaries that is distinct from one's own country.

Sovereign Immunity

A legal doctrine that protects a sovereign state or its governmental units from being sued without its consent.

Act Of State Doctrine

A doctrine that provides that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.