Which of the Following Describes a Situation in Which an Employee

question 117

Multiple Choice

Which of the following describes a situation in which an employee prefers to exert less effort than the effort the owner desires because the employee's effort cannot be accurately monitored and enforced?

• A) Goal incongruence
• B) Moral hazard
• C) Performance report variance
• D) Incentive report variance

---

Definitions:

Discovery

Discovery is the legal process by which parties involved in a dispute disclose to each other relevant documents and information not previously known in preparation for legal proceedings.

Depositions

Out-of-court testimonies given under oath by parties or witnesses in a legal case, used as evidence during trial.

Legal Entitlement

A right given by law to an individual or entity to receive or do something.

Remedy

A means of legal reparation or correction, available through court proceedings, for a wrong or harm suffered.