Which of the Following Is True About Outcome-Oriented Contracts

question 16

Multiple Choice

Which of the following is true about outcome-oriented contracts?

• A)They require more supervision than behavior-oriented contracts.
• B)When profits drop,agents' compensation goes up in outcome-oriented contracts.
• C)Agents do not demand compensating wage differentials in such contracts.
• D)Agents face minimal risks in such contracts.
• E)They are typically a major component of executive compensation.

Appreciate the legal and social responses to gender-based discrimination and harassment.

Describe the psychological processes leading to ethical violations.

Recognize the importance of ethical behavior and management's role in promoting it.

Understand the impact of organizational culture on ethical and unethical behaviors.

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Definitions:

Marble

A metamorphic rock composed mainly of recrystallized carbonate minerals, commonly used in sculpture and as a building material.

External Financing Need

The requirement for funds that a company must fulfill through external sources, like equity or debt, to finance its operations beyond what it can fund through its internal cash flow.

Full Capacity

The maximum level of output that a company can sustain over a long period without increasing its fixed costs.

Capital Intensity Ratio

A financial metric that measures the amount of capital needed per unit of output or the capital required to generate a dollar of revenue.