One way of enforcing incomplete contracts with employees is for ﬁrms to _____.
A) grant them permanent employment within the ﬁrm
B) review their performance periodically
C) implement a system of promotions based on seniority
D) provide them with fringe beneﬁts

Question

Quizplus · Accepted Answer

Periodic performance reviews are a common method for enforcing incomplete contracts with employees, as they allow firms to monitor and evaluate employee performance over time, ensuring that employees meet their job requirements and objectives.

One Way of Enforcing Incomplete Contracts with Employees Is for ﬁRms