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. The other options (A-D) all refer to factors that can subvert a firm's efforts to expand its managerial capabilities, such as the time and effort required to train new managers (A), the incentives facing entrepreneurs and managers with respect to growth (B), the difficulty of screening for competent and trustworthy individuals (C), and the risk that managers will shirk their responsibilities or engage in opportunistic behavior (D).

According to the Basic Model of Firm Growth Articulated in Chapter