________ describes contexts in which, once risk is shared, the individual fails to make as much effort to avoid harm as when risk was not shared.
A)Goal congruence
B)Moral hazard
C)Management compensation
D)Incentive compensation
E)Executive compensation

Question

Quizplus · Accepted Answer

This scenario describes moral hazard, where an individual is more likely to take risks or engage in reckless behavior if the potential consequences or costs of that behavior are shared with others, such as an insurance company or a partner in a business. This can lead to a lack of effort in avoiding harm, as the individual knows that they will not bear the full burden of the negative outcomes. Goal congruence, management compensation, incentive compensation, and executive compensation do not directly describe this phenomenon.

________ Describes Contexts in Which, Once Risk Is Shared, the Individual