Question

From the company's perspective, it is acceptable when two divisions are indifferent between trading with each other or with outsiders as long as the supplying unit...

a) True
b) False

Answer 1

From a company's perspective, it is usually preferred for divisions to engage in internal trade because it promotes coordination, efficiency, and cost savings.

Step-by-step explanation:

In the context of a company, it is generally not acceptable for two divisions to be indifferent between trading with each other or with outsiders. From the company's perspective, it is usually preferred for divisions to engage in internal trade, as it promotes coordination, efficiency, and cost savings. Trading with external parties may involve additional transaction costs and potential risks.