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.

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Definitions:

Dimension

An aspect or feature of a situation, problem, or thing; sometimes refers to measurable extents such as length, breadth, and depth.

Assessment

The process of evaluating or analyzing something to understand its value, significance, or condition.

Fault-Defend Pattern

A communication pattern where one party consistently blames the other, leading to defense mechanisms rather than constructive problem-solving.

Passive-Active Pattern

Refers to the behavior patterns where individuals oscillate between passive and active roles, often in the context of relationships or decision-making.