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An effective capital allocation process:____.
a. promotes productivity.
b. encourages innovation.
c. provides an efficient market for buying and selling securities.
d. all of these choices are correct.


Sagot :

An effective capital allocation process promotes productivity, encourages innovation and provides an efficient market for buying and selling securities. Hence, option D is correct.

What is capital allocation?

Capital allocation entails the distribution, re-distribution, and investment of financial resources to maximize stakeholder returns. A strategic financial decision made by the chief executive.

Cash flow from operations, philanthropy, and external debt are the three sources of capital utilized in the entire capital allocation and management process of not-for-profit organizations.

Thus, option D is correct.

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