Question: Incentive compensation schemes are more likely to be value enhancing if: Question 9 options: A) they can accurately account for the dysfunctional behavior of the

Incentive compensation schemes are more likely to be value enhancing if:

Question 9 options:

A)

they can accurately account for the dysfunctional behavior of the principal.

B)

they are designed to minimize the principal's average cost.

C)

they can minimize the administrative cost borne by the agent.

D)

they are designed to limit the agent's gaming behavior.

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