Answer all questions! 1. Explain what are royalty rate contracts andfixed-fee contracts. What is the
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Answer all questions! 1. Explain what are royalty rate contracts andfixed-fee contracts. What is the main differencebetween them? 2. Give an example of each of the two types of contracts.Explain which type of contract is used in your organization. (Ifyou are not currently employed you can give a hypothetical exampleor an example from your experience). 3. Describe the differences in the incentive effects of thecontracts. What are the advantages and the disadvantages of each ofthe contracts? Explain the reasons why one of them and not theother is used in your organization. Describe the consequences foryour organization of changing the existing contract. . . .
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