Principal-agent problem with his employees

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Reference no: EM13869353

Which of the following practices would indicate that an employer is trying to overcome a principal-agent problem with his employees?

a. The employer links part of the employees’ wages to profits by giving employees stock options

b. The employer has voluntarily removed video cameras from the factory floor.

c. The employer has discontinued the practice of giving his employees' year-end bonuses.

d. Both A and B are correct.

Reference no: EM13869353

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