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Author Question: The common factors that give rise to all principal-agent problems include the a. unobservability of ... (Read 17 times)

JMatthes

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on: Jul 1, 2018
The common factors that give rise to all principal-agent problems include the
 a. unobservability of some manager-agent action
  b. presence of random disturbances in team production
  c. the greater number of agents relative to the number of principals
  d. a and b only
  e. none of the above

Question 2

A firm can better align its salespersons goals to its own if
 a. It bases performance evaluation on revenues
 b. It pays its salespeople a commission based on profits
  c. It pays its salespeople a commission based on sales
  d. It pays its salespeople a salary


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joechoochoy

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Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

b


JMatthes

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Reply #2 on: Jul 1, 2018
Thank you :)


joechoochoy

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Reply #3 on: Jul 1, 2018
Happy to help you


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