A chief purpose of long-term contracts is to improve agents'
A) information.
B) incentives.
C) control over principals.
D) security.

Name: A chief purpose of long-term contracts is to improve agents' A) information. B) incentives. C) control over principals. D) security.
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Question

Quizplus · Accepted Answer

Long-term contracts are primarily designed to align the incentives of agents with the goals of the principals, ensuring that agents act in the best interest of the principals over an extended period.

A Chief Purpose of Long-Term Contracts Is to Improve Agents