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.
• E) None of the given Answers.

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Definitions:

Structural Functionalism

A theory in sociology that considers society to be a sophisticated system where various components interact to foster cohesion and order, emphasizing the roles and purposes of social structures.

Dysfunction

In sociology, refers to any social pattern that disrupts the operation of society, leading to conflict and decreased stability.

Social Structure

The complex framework of societal institutions, social relations, and norms that shape the behavior and interactions of individuals within a society.

Consensual Nature

Pertains to the aspect of agreements or decisions that are reached by all members of a group collectively.