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:

Management-By-Objectives

A strategic management model where managers and employees work together to set, monitor, and achieve specific goals within an organization.

Jointly Agreed

Reached through a cooperative process where all parties involved give consent to terms or decisions.

Human Resource Management

The strategic approach to the recruitment, management, development, and well-being of an organization's employees.

Subjective Performance

Evaluation of an employee's performance based on personal judgments rather than measurable outcomes.