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According to the Agency Theory, Because Employees Prefer a Salary

question 16

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According to the agency theory, because employees prefer a salary, they will demand a wage premium in exchange for accepting performance-based pay.


Definitions:

Noxious Stimulus

An unpleasant or harmful stimulus that causes discomfort or pain.

Aversive Stimulus

An unpleasant or harmful stimulus used to reduce or eliminate an undesirable behavior.

Weaken Response

A decrease in the strength or effectiveness of a reaction or response in a given situation.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to a learned response.

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