To Keep Employees from Shirking,you Can Invest in Greater Monitoring

question 33

Multiple Choice

To keep employees from shirking,you can invest in greater monitoring

• A)even though monitoring is expensive
• B)especially when monitoring is not very efficient
• C)when employees fail to respond to incentive contracts
• D)when incentives solve both moral hazard and adverse selection problems with employees

Learn the significance of the DARN and CAT mnemonics in motivating change.

Comprehend the goals and fundamental principles of Motivational Interviewing (MI).

Know the theoretical underpinnings that influence and support the development of MI.

Master the art of paraphrasing and reflecting in the context of counseling to enhance communication.

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Definitions:

Fair Value Option

The fair value option is an accounting approach allowing companies to measure and report certain assets and liabilities at their fair values to better reflect market conditions.

Equity-Method Investments

An accounting treatment for investments in which the investor has significant influence over the investee, typically between 20% and 50% ownership, requiring the investor to include its share of the investee's income.

Trading Security

A financial instrument held by a firm primarily for the purpose of selling it in the short term for profit.

Available-for-sale Security

Financial securities that are not classified as held-for-trading or held-to-maturity, and thus can be sold in the market.