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:

New Opportunities

Fresh ventures or conditions that present potential for profit and growth in a business or personal context.

Corporate Entrepreneur

An individual within a corporation who promotes innovation and new business development, similar to an entrepreneur within a startup.

Competitive Position

A business's standing or ranking among its competitors in the market, often determined by its competitive advantage.

Collaborate

To work jointly with others, especially in intellectual endeavors or projects, leveraging collective expertise.