Scenario 4.1 LMNO Corporation Is a U.S.-Based Company with Four Distinct Businesses

question 5

Multiple Choice

Scenario 4.1
LMNO Corporation is a U.S.-based company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs. LMNO is in the process of acquiring another company, its major music store rival BeBop Records. Because its rap stars are so famous, LMNO charges crazed fans a higher price for its music compact discs and DVD videos. The fans don't mind, as they often have the opportunity to meet the rap stars in person at various LMNO music stores throughout the year. LMNO has a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.
-Refer to Scenario 4.1. Which organizational form or design is LMNO likely to have adopted?

• A) Functional, or U-form
• B) Conglomerate, or H-form
• C) Divisional, or M-form
• D) Horizontal
• E) Vertical

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Definitions:

Public Grazing Land

Land owned by the government that allows individuals to graze their livestock on it, typically for a fee or under certain conditions.

Common Resource

A resource like air or water that is not owned by anyone, but its use is available to everyone, leading to potential overuse.

Consumption

Consumption refers to the act of using goods and services by households, contributing to the overall demand in an economy.

Availability

The condition of being accessible or obtainable.