In company-employee relationship, employees expect a valuable return in exchange for their commitments and loyalty. Define psychological contract, with examples? (1X5)

Describe Contract View of Business Firm's Duties to Custómer. What is the moral duty to consumers under Contractual Theory?

The reduction in profit arising from the actions of managers being self-serving or possible conflict of interest can best be attributed to.…........….….. • A. Agency cost • B. Tangible expense • C. Agency theory • D. Agency problem

Agency theory suggests that one way to motivate managers to act in the best interests of the owners/shareholders is to link managerial compensation to firms' payoffs, such as net income or share returns. However, such a linkage imposes risk on the manager. Required: (1) Why is it important to control or reduce some of the risk thus imposed on managers? Explain. Discuss two methods by which risk imposed on the managers could be reduced.