Which of the Following Describes a Situation in Which an Employee

question 117

Multiple Choice

Which of the following describes a situation in which an employee prefers to exert less effort than the effort the owner desires because the employee's effort cannot be accurately monitored and enforced?

• A) Goal incongruence
• B) Moral hazard
• C) Performance report variance
• D) Incentive report variance

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Definitions:

Internal Validity

The extent to which a study can rule out or make unlikely alternative explanations of the results, indicating that the causal relationship being tested is trustworthy.

Construct Validity

The degree to which a test or instrument accurately measures the theoretical construct it is intended to measure.

Low Construct Validity

When a test or tool does not accurately measure the theoretical concept it is intended to measure.

Operational Definition

A clear, precise description of how variables in a study will be measured or manipulated, making research findings replicable and understandable.