An effective capital allocation process
A)encourages innovation.
B)promotes productivity.
C)provides an efficient and liquid market for buying and selling securities.
D)all of these.

Question

Quizplus · Accepted Answer

An effective capital allocation process encourages innovation by directing resources towards new and groundbreaking ideas, promotes productivity by allocating resources to the most efficient and profitable endeavors, and provides an efficient and liquid market for buying and selling securities, allowing investors to allocate capital to those who can make the best use of it. Therefore, all of these are important components of an effective capital allocation process.

An Effective Capital Allocation Process