Compensation contracts that provide incentives for agents to increase organisational value might include
A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question

Compensation contracts that provide incentives for agents to increase organisational value might include 
A) I and II only 
B) II and III only 
C) I and III only 
D) I, II, and III

Quizplus · Accepted Answer

Compensation contracts that provide incentives for agents to increase organisational value might include:

- I. Stock options, which can align the interests of shareholders and managers by making the value of the manager's compensation dependent on the value of the firm's stock. 
- II. Performance-based bonuses, which provide rewards when specific goals are met or exceeded, encouraging agents to work towards the overall success of the organisation. 
- III. Promotion opportunities, which can motivate agents to perform well by offering the possibility of advancement to a higher-level position within the organisation.

All three options (I, II, and III) can provide incentives for agents to increase organisational value, making D the best answer.

Compensation Contracts That Provide Incentives for Agents to Increase Organisational