Which of the following is not a feature of outcome-oriented principal-agent contracts?
A)When profits are high,compensation goes up.
B)The principal must invest in monitoring information.
C)Agents require a compensating wage differential.
D)Risk is increased for the agent.

Question

Quizplus · Accepted Answer

Outcome-oriented contracts typically reduce the need for the principal to invest in monitoring, as compensation is linked directly to outcomes or results, which are easier to observe than effort levels.

Which of the Following Is Not a Feature of Outcome-Oriented