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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To reduce in strength, effectiveness, or intensity.

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