Within the Principal/agent Perspective of PAT,the Price-Protection Approach Is

question 14

Multiple Choice

Within the principal/agent perspective of PAT,the price-protection approach is:

• A) The principal pays the agent a lower salary on the basis that the agent is expected to undertake opportunistic behaviour.
• B) The contract between the principal and agent includes a clause that stipulates the basis for pricing of goods so that the agent does not price the product too highly in an effort to increase the agent's short-term rewards.
• C) The contract between the principal and the agent specifies a period within which the price paid for the services of the agent cannot be changed.
• D) The contract between the principal and the agent includes an agreement whereby the agent guarantees the price of the shares in the company will be protected by the agent's actions.

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Definitions:

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