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:

Peripheral Vision

The part of vision that occurs outside the very center of gaze, allowing for the detection of stimuli and movement in a wider field around the direct line of sight.

Wavelength

The distance between successive crests of a wave, often used to describe the physical properties of electromagnetic waves such as light and radio waves.

Purity

The state of being free from contaminants, adulterants, or imperfections; often used in moral or ethical contexts.

Amplitude

A measure of the intensity or strength of a wave signal, depicted as the height of the wave from its equilibrium.