The Downside of Synergy in a Diversified Firm Is

question 9

Multiple Choice

The downside of synergy in a diversified firm is:

• A) Increasing independence of businesses
• B) The reduction of activity sharing
• C) Excessive focus on risky innovation
• D) The loss of flexibility

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Definitions:

Theory X

A management theory assuming that employees are inherently lazy and will avoid work if possible, necessitating control and coercion by management.

Subordinates

Employees or team members who are ranked lower in a chain of command or hierarchy within an organization.

Self-motivated

Having the personal drive or inner willingness to undertake activities without external encouragement.

Maslow's Hierarchy

A framework for understanding human motivation based on a progression of needs, ranging from physiological, safety, love/belonging, esteem, to self-actualization.