What Happens When the Process by Which Governance Develops Exhibits

question 5

Multiple Choice

What happens when the process by which governance develops exhibits path dependence?

• A)Governance arrangements split decision rights and controls between two related firms
• B)Governance arrangements are optimal
• C)Past circumstances could exclude certain possible governance arrangements in the future
• D)The firm will split into two entities to reduce the governance issues created
• E)The governance will form effectively

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Definitions:

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

World Trade Organization

An international institution that regulates and facilitates global trade between nations, aiming to ensure smooth, free, and predictable trading.

United Nations

An international organization founded in 1945 to promote global peace, security, and cooperation among its member countries.

Local Economy Dominance

The significant influence or control of a particular area's economy by one or more entities.