One of the ways of coping with the principal-agent problem is
A) giving orders.
B) providing incentive pay.
C) shirking.
D) using only short-term contracts.

Name: One of the ways of coping with the principal-agent problem is A) giving orders. B) providing incentive pay. C) shirking. D) using only short-term contracts.
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Question

Quizplus · Accepted Answer

Providing incentive pay aligns the agent's interests with the principal's, motivating the agent to act in the principal's best interest.

One of the Ways of Coping with the Principal-Agent Problem