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Which of the Following Is True About Outcome-Oriented Contracts

Question 43

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.

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