When a Corporation Pursues a Related-Constrained Diversification Strategy, Financial Controls

question 46

Multiple Choice

When a corporation pursues a related-constrained diversification strategy, financial controls may not add value to strategy implementation efforts since it is difficult to

• A) use them without reducing cooperation among divisional managers.
• B) transfer capital between units.
• C) maintain an arms-length relationship between headquarters and the divisions.
• D) identify which objective criteria to monitor.

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Definitions:

Aversive Conditioning

A form of behavior modification that involves using unpleasant stimuli to discourage undesirable behaviors.

Systematic Desensitization

A behavioral therapy technique aimed at reducing fear or anxiety responses, through gradual exposure to the feared object or situation.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the role of reinforcement in shaping behavior.

Aversive Conditioning

A form of conditioning that uses unpleasant stimuli to induce a negative response to certain behaviors.