A Contingent Contract Can Create Production Inefficiency; However,many Principals Accept

question 39

Multiple Choice

A contingent contract can create production inefficiency; however,many principals accept this because

• A) inefficiency is inevitable.
• B) monitoring is costless.
• C) risk is reduced.
• D) profit will increase as a result.

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Definitions:

Social Responsibility

The obligation of individuals or organizations to act for the benefit of society at large.

Amalgamated Enterprises

Companies that have combined or merged their resources and operations to form a single, larger organization.

Small U.S. Town

A smaller, typically more rural community in the United States, characterized by a lower population density.

Foreign Country

A nation that is outside one's own country's territorial boundaries and sovereignty.