In Addition to All of the Normal Operational Challenges of Small

question 48

Short Answer

In addition to all of the normal operational challenges of small business,when you decide to go into business with siblings,parents,or relatives,you also face the possibility of __________ developing over the multiple relationships and issues that exist outside of the business,complicating the business relationships as well.

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Definitions:

Asymmetric Information

A circumstance in which one party involved in an exchange has more or better information compared to the other party.

Hidden Action

A concept in economics and game theory where one party's action is not observed or cannot be monitored by the other involved party.

Hidden Characteristic

In economics and contract theory, a hidden characteristic refers to information about a product, service, or individual that is not known beforehand by one of the parties in a transaction, potentially leading to problems like adverse selection.

Asymmetric Information

A situation where one party in a transaction has more or superior information compared to another.