When a Corporation Pursues a Related-Constrained Diversification Strategy,financial Controls May

question 10

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) evaluate the financial performance of individual business units and their managers.
• B) transfer capital between units.
• C) deal with the multiple responsibilities and authorities of division managers.
• D) identify which objective criteria to monitor.

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