Which of the Following Is True About Outcome-Oriented Principal-Agent Contracts

question 17

Multiple Choice

Which of the following is true about outcome-oriented principal-agent contracts?

• A)The principal must monitor with little cost what the agent has done.
• B)When profits drop, agent's compensation goes up.
• C)Agents do not demand compensating wage differentials in such contracts.
• D)Agents face minimal risks in such contracts.
• E)The interests of the company and employees are aligned in such contracts.

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Definitions:

Osteoblast

Specialized cells responsible for bone formation, synthesizing and secreting the matrix materials necessary for bone development and growth.

Osteocyte

A mature bone cell enclosed in the bone matrix, responsible for maintaining bone tissue.

Osteoclast

A type of bone cell that breaks down bone tissue, playing a critical role in bone growth, healing, and remodeling.

Chondroclast

Chondroclasts are cells involved in the resorption of cartilage, playing a role in the development, maintenance, and repair of cartilaginous structures.