Which of the Following Statements Is True Regarding Related Diversification

question 94

Multiple Choice

Which of the following statements is true regarding related diversification?

• A) The bureaucratic costs associated with managing related diversification are much greater than those associated with unrelated diversification.
• B) Considerably more communication and coordination are needed to create value from unrelated diversification than from related diversification.
• C) A functional structure is most suitable for an organization that is pursuing a strategy of related diversification.
• D) If unrelated diversification is to provide the gains comparable to those obtained from related diversification, a much larger corporate headquarters staff is required to coordinate interdivisional activities.

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Definitions:

Task Labor

A system of labor, mostly used in agricultural settings, where enslaved people were assigned specific tasks to complete each day.

Slave Families

Family units formed by enslaved people, often facing challenges such as separation due to sale by slave owners, yet demonstrating resilience and cultural continuity.

Lifelong Commitment

A long-term dedication or pledge to a cause, activity, or relationship, intended to last the entirety of one's life.

Marriage Ceremony

A formal event or ritual where two individuals are united in marriage, often encompassing a variety of customs and traditions depending on the culture.