A Firm That Earns Less Than 70 Percent of Revenue

question 15

Multiple Choice

A firm that earns less than 70 percent of revenue from its dominant business and has direct connections between its businesses is engaging in __________ diversification.

• A) unrelated
• B) related constrained
• C) related linked
• D) dominant business

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Definitions:

Pyramid-Shaped

Describing a structure or hierarchy where each level progressively narrows to a point at the top, typical of organizational charts.

Emotional Insecurity

A state of feeling uncertain, anxious, or less confident about oneself, often impacting one's mental well-being and relationships.

Prestige Power

The power stemming from one’s status and reputation.

Organizational Politics

The activities within an organization aimed at improving someone's status or position and are often seen as self-serving at the expense of the company.