Which of these situations limit the use of ownership in resolving incentive problems?
A)The employees are well trained and highly qualified.
B)The employees try to maximize their personal utility.
C)The employees lack full control over their output.
D)The actions of employees are unobservable.

Question

Quizplus · Accepted Answer

Ownership is less effective in resolving incentive problems when employees lack full control over their output, as they cannot directly influence the outcomes tied to ownership incentives.

Which of These Situations Limit the Use of Ownership in Resolving