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:

Total Revenues

The full amount of income generated by the sale of goods or services before any expenses are subtracted.

Government Program

refers to an official initiative or project established and funded by a government to achieve specific goals or provide certain services to its citizens.

Land Under Cultivation

Land that is actively used for the production of crops and agricultural goods.

Cross-Price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good.