Which of the Following Terms Describes a Contract Based on Information

question 18

Multiple Choice

Which of the following terms describes a contract based on information that cannot be observed by courts or arbitrators?

• A)Explicit incentive contract
• B)Implicit incentive contract
• C)Risk sharing contract
• D)Compensation contract
• E)Pay-for-performance

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Definitions:

Geographic Information Systems

Systems used for storing, manipulating, and analyzing geographical data.

Centre-of-Gravity

A geographical strategy tool used in supply chain management to determine the best location for facilities by minimizing transportation costs.

Factor Rating

A quantitative decision-making technique used in operations management for evaluating alternative options or locations by assigning weights to various factors based on their importance.

Crossover Analysis

A method used to determine the point at which two different strategies result in the same cost or outcome, helping in decision-making.