Which of the Following Theories Seeks to Explain the Factors

question 90

Multiple Choice

Which of the following theories seeks to explain the factors that affect the rate at which new organizations are born (and die) in a population of existing organizations?

• A) contingency theory
• B) population ecology theory
• C) institutional theory
• D) transaction cost theory

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Definitions:

Unit Variable Cost

The cost associated with producing an additional unit of a product, not including fixed costs that remain constant regardless of production volume.

Profit

The financial gain realized when income generated from business activities exceeds the expenses, taxes, and costs associated with maintaining the business.

Picture Frame Store

A retail outlet specializing in selling frames for artwork, photographs, and other decorative items to be displayed.

Washburn Guitars

A renowned manufacturer known for producing high-quality guitars and string instruments, with a history dating back to the 19th century.