The Principal-Agent Economic Model Applied to Employment Contracts Includes Two

question 45

Multiple Choice

The principal-agent economic model applied to employment contracts includes two of the following management performance aspects:

• A) Rights and duties.
• B) Uncertainty and lack of observability.
• C) Performance and reward.
• D) Controllability and responsibility.
• E) Risk and motivation.

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Definitions:

Germ Layer

One of the primary layers of cells (ectoderm, mesoderm, or endoderm) in the early embryo that will differentiate into various tissues and organs.

Pituitary Gland

a small, pea-sized gland located at the base of the brain, responsible for controlling important functions in the body through the release of hormones.

Ectoderm

The external layer of cells or tissues in an embryo during its initial stages of growth, which develops into the skin's outer layer, the brain, and the nervous system.

Environmental Factors

External elements including temperature, water, sunlight, and soil that affect living organisms and the functioning of ecosystems.