Which One of the Following Best Describes a Conglomerate Structure

question 37

Multiple Choice

Which one of the following best describes a conglomerate structure?

• A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources.
• B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
• C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
• D) Employees have two or more superiors, a project manager and a functional manager.
• E) This is most appropriate for large corporations with many product lines in several unrelated industries; unrelatedness prevents any attempt at gaining synergy among the divisions.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all final goods and services produced within a country's borders in a given year, reflecting the real quantity of production.

Expansionary Monetary Policy

A policy by the central bank to increase money supply and encourage economic growth, typically through lowering interest rates.

Fed

Short for Federal Reserve, the central banking system of the United States, responsible for monetary policy.

Market Interest Rate

The prevailing rate at which borrowers can obtain loans and depositors can earn on their investments in the financial market, influenced by supply and demand forces.