Appendix: Refer to Exhibit 15A-1

question 7

Essay

Appendix:
Refer to Exhibit 15A-1.
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Part C: What is the expected net profit under the simple profit sharing contract,and why would the partners adopt an incentive-compatible revelation mechanism (i.e.,an optimal incentives contract)?

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Definitions:

Coordinator

A person or role responsible for organizing activities and ensuring that tasks are completed efficiently and effectively.

Team Leader

A team leader is an individual who guides, directs, and motivates a team towards achieving its objectives.

Employee Performance

Employee performance involves the evaluation of how effectively an individual fulfills their job responsibilities and contributes to organizational goals.

Work Unit

A functional division or team within an organization, focused on a specific set of tasks or objectives.