According to the basic model of firm growth articulated in Chapter 13, the ability to increase managerial services to facilitate growth is not friction free but is constrained and limited. Which of the following selections is not one of the factors that constrains or limits a firm's ability to increase its managerial services?
A) the time required to socialize new managers
B) how motivated entrepreneurs and/or managers are to grow the firm
C) adverse selection
D) moral hazard
E) benchmarking

Question

Quizplus · Accepted Answer

Benchmarking is not a factor that constrains or limits a firm's ability to increase its managerial services. Adverse selection and moral hazard refer to problems with information asymmetry that can affect hiring decisions, while the time required to socialize new managers and the motivation of entrepreneurs and managers are factors that can affect a firm's ability to increase its managerial services.

According to the Basic Model of Firm Growth Articulated in Chapter