Diversified firms exhibit two key advantages but only one disadvantage regarding internal capital allocation:
A) Therefore, on balance, internal capital markets are
Preferable
B) This isn't the whole story. Other major
Disadvantages swing the balance the other way
C) It's not the number of disadvantages, but the
Overall balance which matters
D) Political processes always outweigh the
Advantages
Correct Answer:
Verified
Q34: The text claims that economies of scope
Q35: What are "strategic-level linkages" when discussing diversification?
A)The
Q36: Several decades of empirical evidence indicates that
Q37: The internal labor market provides a large,
Q38: Bringing different businesses under a single ownership
Q40: The growth objective can be negative for
Q41: Large diversified companies are very good at:
A)Reacting
Q42: There was a surge in "leveraged buyouts"
Q43: CAPM stands for:
A)Compound Assessment of Portfolios and
Q44: Leveraged buyouts happened because:
A)The 1980s saw the
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