In Licensing Arrangements

question 27

Multiple Choice

In licensing arrangements

• A) the licensee can gain technical expertise.
• B) companies can be aided in entering new countries directly.
• C) the licensee might become a competitor to the licensing firm.
• D) companies should never license their distinctive competencies.
• E) all of the above

Explain how perceived control can affect longevity and health.

Discuss the psychological impact of optimism and pessimism on stress and coping strategies.

Determine the role of social support and relationships in stress management and health.

Analyze the effects of self-control expenditure on subsequent behavior and decision-making.

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Definitions:

Moral Hazard

Post-contractual increases in risky or negative behavior. Examples are reduced incentive to exercise care once you purchase insurance and reduced incentives to work hard once you have been hired. Moral hazard is similar to adverse selection in that it is caused by information asymmetry; it differs in that it is caused by hidden actions rather than hidden types.

Taxi Driver

A person employed to drive a car or van, which transports passengers to their chosen destinations for a fee.

Piece-rate

A payment method where workers are paid a fixed rate for each unit of production completed, encouraging productivity by directly linking pay to output.

Moral Hazard

A situation where one party takes on excessive risk because the negative consequences of the risk will be borne by another party.