Which of the following is a proposition of the institution-based view?
A) Decisions based on bounded rationality should be avoided.
B) Dependency on informal constraints will always increase the political risks associated with a firm.
C) When formal constraints are unclear, informal constraints will play a larger role in reducing uncertainty and providing constancy to managers and firms.
D) Informal constraints always increases transaction costs for the firm.
Correct Answer:
Verified
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