Which Is a More Efficient Mechanism for Allocating Capital Among

question 46

Multiple Choice

Which is a more efficient mechanism for allocating capital among different businesses: the internal capital allocation of diversified firms or the external capital market?

• A)The internal capital allocation process of diversified firms
• B)The external capital market
• C)It depends on the effectiveness of the specific firm's capital allocation process
• D)It depends on the effectiveness of the specific firm's capital allocation process and the efficiency of the capital market in the country where the firm is located.

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Definitions:

Planned Change

A deliberate effort to improve an organization's operations or processes through structured interventions and strategies.

Changing Phase

A period or stage in a process of transformation or transition from one state or condition to another.

Refreezing Phase

The final stage in the change process where new behaviors or processes are solidified and integrated into normal operations.

Coercing Phase

A stage in conflict or negotiation where forceful tactics are employed to gain advantage or compliance.