automatically gives preferential treatment in the allocation of funds to its ris

Question

                            
           automatically gives preferential treatment in the allocation of funds to its riskiest division.                             
           encourages the division managers to only recommend their most conservative projects.                             
           maintains the current risk level and capital structure of the firm.                             
           automatically maximizes the total value created for its shareholders.                             
           allocates capital funds evenly amongst its divisions

Explanation / Answer

automatically gives preferential treatment in the allocation of funds to its riskiest division

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