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.
Correct Answer:
Verified
Q49: One common argument against diversification strategies is
A)managers
Q50: The most often-cited benefits of diversification are
A)growth,
Q51: Adam Smith, the famous economist, called the
Q52: The primary source of value creation from
Q53: Over the past 30 years, the tendency
Q55: Outsourcing is a form of
A)increased vertical integration.
B)decreased
Q56: The move over the past 25 years
Q57: A firm becomes more vertically integrated when
A)it
Q58: A major problem associated with internal capital
Q59: An advantage of diversification is a better
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