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

question 2

True/False

In principle,the information advantages of a diversified company mean that internal capital markets are more efficient than external capital markets.In practice internal capital markets tend not to reallocate investment funds from poorly-performing subsidiaries to highly-performing subsidiaries.

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Definitions:

Team Cohesiveness

The extent to which team members are attracted to the team and motivated to remain in it, fostering unity and commitment.

Transformational Leadership

A leadership style that involves inspiring followers to exceed their own self-interests for the good of the group or organization, often through a shared vision.

Universal Approach

A theory or method that assumes it can be applied effectively across different contexts and cultures without significant modification.

Contingency Approach

An organizational theory that suggests the effectiveness of leadership or decision-making strategies is dependent on the context or situation.