An Ability to Efficiently Allocate Capital Through an Internal Market

question 40

Multiple Choice

An ability to efficiently allocate capital through an internal market may help the firm protect the competitive advantages it develops:

• A) through reduced disclosure to outside parties.
• B) by the ability to not report losses to investors.
• C) by the ability to increase pay to managers without shareholders being aware.
• D) through the ability to reinvest cash in dividends to shareholders.

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Definitions:

Personal Selling

A form of direct marketing involving face-to-face interaction between a salesperson and a potential buyer to close a sale.

Order Taking

The process of recording or receiving orders for goods or services from customers.

Order Getting

The process of securing purchase orders from customers, often involving direct personal selling and negotiation.

Inbound Telemarketing

A marketing approach where a company receives calls from interested customers or potential leads, often as a result of advertising or promotional activities.