Which of the Following Makes Outcome-Oriented Contracts Less Likely to Occur

question 40

Multiple Choice

Which of the following makes outcome-oriented contracts less likely to occur?

• A)Risk aversion among agents
• B)High outcome uncertainty
• C)More programmable jobs
• D)Less measurability of outcomes
• E)Low risk premium in compensations

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Definitions:

Notify the Third Party

The act of informing someone not directly involved in a transaction or agreement about relevant information or developments.

Disclosed Principal

A principal whose identity is known by the third party at the time a contract is entered into with the agent acting on behalf of the principal.

Signs the Contract

The act of agreeing to a contract's terms and legally binding oneself by signing a document.

Nondelegable Duty

An obligation or duty that cannot be transferred to another party and must be performed by the individual or entity originally charged with it.