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:

Status Generalization

The process by which individuals extrapolate others' broader social status based on limited or irrelevant information.

Sportscaster

A journalist who reports and provides commentary on sports events, either on television or radio.

High Status

Occupying a position of superior rank, prestige, or respect within a social hierarchy.

Foot In The Door

A persuasion technique where a small request is made first to increase the likelihood of agreement to a larger request later.