The Problem with the Strategy of Achieving Credibility Through Reputation

question 70

Multiple Choice

The problem with the strategy of achieving credibility through reputation is that

• A)reputations are rarely credible.
• B)reputations lack any commitment.
• C)serious costs may be incurred during the period in which reputation is established.
• D)rules always have a lower cost than reputations in maintaining credibility.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to outside parties, which must be settled over time through the transfer of economic benefits.