Firms cope with uncertainty and incomplete information by using
A)sole proprietorship, limited liability, and market coordination.
B)ownership, incentive pay, and long-term contracts.
C)team production, economies of scale, and transactions costs.
D)the market, the firm, and internal organization.
E)team production, economies of scale, and transaction costs.

Question

Quizplus · Accepted Answer

Firms use ownership, incentive pay, and long-term contracts to align interests, motivate performance, and manage risks associated with uncertainty and incomplete information.

Firms Cope with Uncertainty and Incomplete Information by Using