People's judgment of a company's acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values, is known as
A) Social capital.
B) Venture capital.
C) Legitimacy.
D) Authenticity.
E) Consistency.

Question

Quizplus · Accepted Answer

An important resource for a new venture is legitimacy: people's judgment of a company's acceptance, appropriateness, and desirability. When the market confers legitimacy, it helps overcome the "liability of newness" that creates a high percentage of new venture failures.

People's Judgment of a Company's Acceptance, Appropriateness, and Desirability, Generally