In Principle,the Information Advantages of a Diversified Company Mean That

question 5

True/False

In principle,the information advantages of a diversified company mean that internal capital markets are more efficient than external capital markets,but in practice internal capital markets tend to allocate funds to subsidise poor performing subsidiaries.

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Definitions:

Conflict Control

Techniques or strategies used to manage, reduce, or resolve disagreements or disputes in interpersonal relationships or group settings.

Negotiated Power

A dynamic where power or influence is distributed through discussion, compromise, or agreement between parties.

Referent Power

Power that comes from our attraction to another person, or the charisma a person possesses.

Expert Power

Power based on a person’s knowledge and experience.