for The_Writer

Relative performance

Herding

Pay-for-performance

Absolute performance

Risk sharing

1. Which of the following terms describes a contract based on information that cannot be observed by courts or arbitrators?

   	A.	Pay-for-performance
   	B.	Risk sharing contract
   	C.	Explicit incentive contract
   	D.	Implicit incentive contract
   	E.	Compensation contract       What type of performance measurement based process was used to determine Jack Welch’s successor, Jeffrey Immelt, as CEO of GE?   A. Merit ratings system   B. Promotion tournament   C. Ratings compression   D. Management-by-objective system   E. 360-degree peer review system     Which of the following terms best describes a contract that guarantees an agent some payment, but provides enough incentive so that the agent does not shirk?   A. Risk premium contract   B. Risk-averse contract   C. Risk-sharing contract   D. Variability reduction contract   E. Certainty equivalent contract       What term best describes the payment which must be offered to a risk-averse individual to willingly accept a gamble?   A.   Certainty equivalent   B.   Risk equivalent   C.   Certainty payment   D.   Risk preference payment   E.     Risk premium