Which Two of the Following Are Reasons Why Related Diversification

question 2

Multiple Choice

Which two of the following are reasons why related diversification may be problematic?

• A) There are significant corporate- level time and cost implications.
• B) There may be significant synergy benefits from links between the various business units.
• C) Business- unit complexity may mean that business unit managers are unable to focus on their own business- unit needs.
• D) It may enable the parent to exploit dominant logics.

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Definitions:

Swiftness

The quality of moving quickly or the ability to act or respond in a fast manner.

Cloward

Refers to Richard Cloward, a sociologist known for his work on the theory of structural strain in causing delinquency and crime.

Illegitimate Opportunity

refers to opportunities for crime that are available to people because of their position or environment, often seen in social learning theory.

Social Controls

Mechanisms, strategies, and techniques societies or groups use to maintain order, enforce norms, and regulate behavior.