Agents Prefer a Behavior-Based Contract When _____

question 99

Multiple Choice

Agents prefer a behavior-based contract when _____.

• A)they are inclined toward risk-taking
• B)the job outcomes are measurable
• C)they require higher compensation
• D)outcome uncertainty is high
• E)they want to minimize monitoring by principal

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Definitions:

Common-law

A legal system based on judicial decisions and precedents rather than statutory laws.

Work-sharing

An employment arrangement where workers reduce their hours to prevent layoffs, often sharing tasks among a group.

The Second Shift

The concept that refers to the unpaid household and caregiving work that typically follows one's primary job, disproportionately affecting women.

Social Deviance

Any behavior or action that violates societal norms and is likely to result in disapproval, sanction, or punishment by the general public.