To Align the Interests of the Agents with the Principal's

question 77

Multiple Choice

To align the interests of the agents with the principal's own interests,one option is to create a behavior-oriented contract that includes

• A)stock options.
• B)profit sharing.
• C)commissions.
• D)merit pay.
• E)revenue sharing.

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Definitions:

Public Offering

The process of offering shares of a private corporation to the public in a new stock issuance, allowing the company to raise capital from public investors.

Confidential

Information that is meant to be kept secret or private between the parties involved, often due to its sensitive nature.

Disclosure

The act of making known or public; in legal and business contexts, it often involves the revealing of previously private information.

Antifraud Provisions

Legal rules and regulations designed to prevent deceit, misrepresentation, and other fraudulent actions in transactions.