An Internal Capital Market Occurs When

question 47

Multiple Choice

An internal capital market occurs when

• A)a diversified company sets up a finance firm as one of its businesses.
• B)enough cash generated by one set of internal firms is used by other internal firms in need of cash.
• C)a subsidiary starts a money-lending business, offering loans to other subsidiaries.
• D)external sources of capital become too expensive.

---

Definitions:

Generalities

Refers broadly to statements, principles, or ideas that lack specificity and are applicable to many situations.

Exaggerations

Statements that stretch the truth or make something seem more significant or different than it is in reality.

Credit Reports

Documents that detail an individual's or entity's credit history, including loans, repayments, and overall creditworthiness.

Reporting Agencies

Reporting agencies, often known as credit reporting agencies or bureaus, collect and consolidate individual credit information, providing credit reports and scores to authorized parties.