Which linkage mechanism is the most informal?
A) Strategic alliance
B) Contracts
C) Reputation
D) Interlocking directorate

Question

Quizplus · Accepted Answer

Reputation is not a formal linkage mechanism as it is not based on any legal agreement or contract. It is more subjective and relies on perceptions and opinions of stakeholders about the trustworthiness, reliability, and credibility of a company. Strategic alliance, contracts, and interlocking directorate are more formal linkage mechanisms as they involve legal agreements, contracts, and official appointments of board members respectively.

Which Linkage Mechanism Is the Most Informal