Walt Disney Company and Johnson & Johnson Are Examples of Companies

question 135

Multiple Choice

Walt Disney Company and Johnson & Johnson are examples of companies that have successfully used related diversification to create value by ________________.

• A) sharing activities
• B) sharing activities and transferring core competencies
• C) transferring core competencies
• D) efficient internal capital allocation and restructuring

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Definitions:

Limited Liability

A legal structure that limits the amount of financial risk and liability to the amount a person has invested in a company.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them certain rights and potential financial benefits based on the company's performance.

Corporate Form of Organization

A legal structure for a business recognized as a separate legal entity, with owners (shareholders) who have limited liability.

Government Regulation

The laws, rules, and guidelines established by governmental bodies intended to control or manage specific activities or industries.