In Which of the Following Cases Are Bureaucratic Costs Likely

question 67

Multiple Choice

In which of the following cases are bureaucratic costs likely to be lowest?

• A) A vertically integrated company with five divisions that pursues full integration
• B) A company with five divisions that pursues related diversification based on economies of scope
• C) A company with five divisions that pursues related diversification based on transferring competencies
• D) A company with five divisions that pursues unrelated diversification based on acquisitions and restructuring
• E) A company with twenty divisions that pursues taper integration

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Definitions:

Synthesis

The combination of ideas, information, or data to form a coherent whole or to derive new insights.

Double Helix

The structure of DNA, characterized by two strands that wind around each other like a twisted ladder.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in growth, development, functioning, and reproduction of all known living organisms.

Discovered

The act of finding something or someone that was previously unknown or unrecognized.