Which Are True Regarding Informal Constraints

question 19

Short Answer

Which are true regarding informal constraints?
a. When formal institutional constraints fail, informal constraints tend to fail as well.
b. Following the collapse the former Soviet Union, informal constraints were unable to facilitate growth of entrepreneurial firms.
c. Even in developed economies, the best-connected firms can reap significant benefits.
d. All of the above.
e. None of the above.

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Definitions:

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Norms

Shared expectations and rules that guide behavior of members within a group or society.

Cohesiveness

The quality of being united, sticking together, or the degree to which members of a group or team are attracted to each other and motivated to stay in the group.

Groupthink

A psychological phenomenon where the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives.