An Allocation of Resources That Does Not Achieve the Maximum

question 7

Multiple Choice

An allocation of resources that does not achieve the maximum net benefit from one or more activities is:

• A) inefficient.
• B) external.
• C) internal.
• D) efficient.

---

Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or confidential information.

Corporate Decisions

Corporate decisions are choices or judgments made by the leadership of a corporation that affect the direction, strategy, operations, or governance of the organization.

Preemptive Rights

Rights that allow shareholders to purchase additional shares in a company before the company offers them to the public, protecting their ownership percentage from dilution.

Transferability

The ability of an asset or property right to be sold or otherwise transferred from one party to another.