Question

A significant benefit of an internal capital market is that corporate headquarters has access to detailed and accurate information regarding the performance of the company's portfolio and can thus make better capital allocation decisions.
A) True
B) False

Answer 1

Answer:

True

Explanation:

The internal capital market include the stock market, bond market, banks and other financial institutions that are directly functioning in country economy.

The statement is true in the sense that all the detail and accurate information regarding the establishment, how capital flows in and out of the company, profit and loss account of the company are contained in the corporate headquarters, this is to enable the headquarters determine how capital should be allocated to their business unit in other to make good decision of how each unit should function positively in the economy.