Which of the Following Is a Proposition of the Institution-Based

question 55

Multiple Choice

Which of the following is a proposition of the institution-based view? 

• A) Decisions based on bounded rationality should be avoided. 
• B) Dependency on informal constraints will always increase the political risks associated with a firm. 
• C) When formal constraints are unclear, informal constraints will play a larger role in reducing uncertainty and providing constancy to managers and firms. 
• D) Informal constraints always increases transaction costs for the firm.

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Definitions:

Close

The final step in a sales process where the salesperson secures the agreement of the customer to purchase.

Modified T-Account Close

A closing technique where the salesperson lists the pros and cons of purchasing a product in a T-account format to help the prospect make a decision.

T-Account

A T-account is a visual representation of a ledger account that depicts a business transaction's effect on a company's accounts.

Continuous-Yes Close

A sales technique that involves asking a series of questions designed to get the customer to keep saying yes, building towards agreement on the final sale.