In Principle,the Information Advantages of a Diversified Company Mean That

question 2

True/False

In principle,the information advantages of a diversified company mean that internal capital markets are more efficient than external capital markets.In practice internal capital markets tend not to reallocate investment funds from poorly-performing subsidiaries to highly-performing subsidiaries.

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Definitions:

Carpel

Ovule-bearing unit that is a part of a pistil.

Endosperm

The tissue produced inside the seeds of most flowering plants around the time of fertilization, providing nutrition to the developing embryo.

Nourishment

The provision of the necessary food and nutrients to support life, growth, and health in an organism.

Embryo

An early stage of development in multicellular organisms, in humans referring to the phase from fertilization until the end of the eighth week.