The key role of institutions is to _____ in business transactions.

Question

Quizplus · Accepted Answer

The key role of institutions is to reduce uncertainty in business transactions. Institutions provide a framework of rules and norms that promote predictability and reduce the risk of opportunistic behavior. This, in turn, reduces uncertainty for all parties involved in the transaction. Institutions help to establish trust and confidence in business relationships, which is essential for economic development and growth.

The Key Role of Institutions Is to _____ in Business