The More "Constrained" the Relatedness of Diversification

question 20

Multiple Choice

The more "constrained" the relatedness of diversification:

• A) the fewer the linkages between the businesses within the portfolio owned by the firm.
• B) the wider the variation in the portfolio of businesses owned by the firm.
• C) the more links there are among the businesses owned by an organization.
• D) the lower the proportion of total organizational revenue derived from the dominant business.

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Definitions:

Consensus

A decision-making process that seeks unanimity, general agreement, or at least the absence of active opposition among members of a group.

Pay Secrecy

Refers to the extent to which the compensation of any individual in an organization is secret or the extent to which information on compensation is formally made available to other individuals.

Pay Inversion

A phenomenon where newer employees receive higher compensation than their more experienced counterparts due to market rate changes, negotiation, or other factors.

Teamwork

The collaborative effort of a group to achieve a common goal or to complete a task in the most effective and efficient way.