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In the principal-agent model, the manager is modeled as having all of the following elements except:...

In the principal-agent model, the manager is modeled as having all of the following elements except: Multiple Choice Provides effort. Outcomes of actions. Decision-making. Risk aversion.

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Answer #1

The correct answer is outcome of actions since these cannot be guaranteed while decision making and risk aversion are in the hands of the agent.

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