Would you describe liquidated damages clauses an incentive


Would you describe liquidated damages clauses an incentive or a punishment? For example, are these clauses intended to serve as an incentive to one of the parties to either continue with or refrain from doing something (like continuing with a company for at least two years so the company can benefit from the education tuition they paid for)?

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Operation Management: Would you describe liquidated damages clauses an incentive
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