An advantage of diversification is a better internal labour market because
A) there's a saving on advertising costs.
B) there's no commission payable to the internal human resources department.
C) employees can be transferred rather than hired / fired, and the firm knows these people well.
D) the firm does not need to invest so much in training new recruits.
Correct Answer:
Verified
Q54: An internal capital market occurs when
A)a diversified
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
Q60: A strategy of unrelated diversification is
A)always a
Q61: One huge problem with vertical integration of
Q62: Full vertical integration compounds risk because
A)top managers
Q63: A major limitation of the BCG Growth-Share
Q64: Large transaction-specific investments tend to lead to
A)the
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