One way a manager can reduce an agent's risk is to tie:
A) penalties more closely to the agent's effort.
B) bonuses more closely to the agent's sales.
C) rewards more closely to the actions that the agent can control.
D) pay directly to past performance.

Question

Quizplus · Accepted Answer

Tying rewards more closely to the actions that the agent can control would reduce the agent's risk by focusing on their performance in areas they have the most influence over. This would incentivize the agent to focus on improving their own performance instead of worrying about external factors that are beyond their control.

One Way a Manager Can Reduce an Agent's Risk Is