Within the principal/agent perspective of PAT,the price-protection approach is:
A) The principal pays the agent a lower salary on the basis that the agent is expected to undertake opportunistic behaviour.
B) The contract between the principal and agent includes a clause that stipulates the basis for pricing of goods so that the agent does not price the product too highly in an effort to increase the agent's short-term rewards.
C) The contract between the principal and the agent specifies a period within which the price paid for the services of the agent cannot be changed.
D) The contract between the principal and the agent includes an agreement whereby the agent guarantees the price of the shares in the company will be protected by the agent's actions.
Correct Answer:
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