One Way to Confront an Individual Employee with the Full

question 53

Multiple Choice

One way to confront an individual employee with the full benefits and costs of their actions is through:

• A) ownership.
• B) an incentive scheme.
• C) moral hazard.
• D) screening.

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Definitions:

Revocation

The act of withdrawing, repealing, or cancelling a right, permission, or contract.

Effective Acceptance

The expression of assent to the terms of an offer in a manner requested or authorized by the offeror, resulting in a binding contract.

Firm Offer

An offer in a contract that is expressed in a way that it cannot be revoked for a certain period of time.

Merchant

An individual or business entity engaged in the trade of goods, services, or both, to consumers.