Final answer:
Companies cannot solely rely on internal information to devise a strategy; external market insights are crucial for a comprehensive approach. False assumptions can lead to incomplete strategies and overlooked market opportunities.
Step-by-step explanation:
The statement that companies can decide on an appropriate strategy based strictly on internally available information is false. Comprehensive strategy development requires not only an understanding of internal capabilities and resources but also a keen awareness of the external market environment, including competitors, consumer behavior, and regulatory changes.
Relying solely on internal information will likely result in an incomplete strategy that overlooks potential opportunities and threats present in the wider market. As a firm grows and its information regarding products, revenues, costs, and profits becomes more accessible to outsiders, investors such as bondholders and shareholders are more likely to contribute financial capital even without personal knowledge of the company's management.