Which are true regarding informal constraints?
A)When formal institutional constraints fail, informal constraints tend to fail as well.
B)Following the collapse the former Soviet Union, informal constraints were unable to facilitate growth of entrepreneurial firms.
C) Even in developed economies, the best-connected firms can reap significant benefits.
D) All of the above.

Question

Quizplus · Accepted Answer

Informal constraints refer to social norms, values, and customs that guide behavior in a society. Option A is false as informal constraints may continue to exert influence even when formal constraints fail. Option B is false as informal constraints played a crucial role in the growth of entrepreneurial firms in the former Soviet Union. Option C is true as even in developed economies, the best-connected firms can benefit from informal networks and relationships.

Which Are True Regarding Informal Constraints