Which of the Following Is NOT a Result of Overdiversification

question 77

Multiple Choice

Which of the following is NOT a result of overdiversification?

• A) Top-level managers do not have a rich understanding of all of the firm's business units.
• B) Managers emphasize strategic controls rather than financial controls.
• C) Firms use acquisition as a substitute for innovation.
• D) Managers become short-term in their orientation.

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Definitions:

Government Transfer Program

Programs through which governments redistribute income, typically from taxpayers to individuals in need, such as welfare, social security, and unemployment benefits.

Unemployment Compensation

Financial payments made to individuals who have lost their jobs until they find new employment, provided by the government or insurance programs.

Social Security

A government program designed to provide financial assistance to retirees, disabled individuals, and survivors of deceased workers.

Externalities

Economic side effects or consequences of an industrial or commercial activity that affect other parties without being reflected in the cost of the goods or services involved, either positively (benefits) or negatively (costs).