Author Question: If firms anticipate that they are at risk of being held up, firms are more likely to adopt contracts ... (Read 94 times)

dollx

  • Hero Member
  • *****
  • Posts: 558
If firms anticipate that they are at risk of being held up, firms are more likely to adopt contracts or organizational forms such as
 a. investments in reputation
  b. mergers
  c. exchange of hostages
  d. All the above

Question 2

Incentive contracts typically result in higher risk-related compensation to agents on average,
 a. even so, they are always worth it
 b. this does not affect their desirability
 c. as a consequence, they may cost more than the problem they solve
  d. therefore, they are never worth it



Anonymous

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

d

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

For a complete list of videos, visit our video library