A firm that disagrees with a particular regulation and attempts to avoid it by complying with the specifics of the law but not the intent of the law is demonstrating:
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C) |
the capture hypothesis. | |
Creative response describes the actions of a firm that for whatever reason, economic or philosophical, is trying to avoid full compliance with a regulation without any obvious violations of the law. Though technically in compliance, the firm is violating the spirit of the regulation. |