Asked by Gladys Surigao on Sep 24, 2024
Verified
A consequence of an incentive contract for employees is that
A) employees must incur additional risk
B) employee level risk is reduced
C) employer level risk is reduced
D) there are no risk related consequences
Incentive Contract
An agreement designed to motivate performance by aligning the interests of parties, typically involving rewards for achieving specified objectives.
Additional Risk
Extra exposure to uncertainty or potential financial loss that comes with certain investments or business activities.
Employee Level Risk
The exposure to potential adverse effects on employees' health, safety, and well-being within the workplace.
- Explore the risks associated with incentive contracts and their impact on both employers and employees.
Verified Answer
Learning Objectives
- Explore the risks associated with incentive contracts and their impact on both employers and employees.
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