The Two Biggest Drawbacks or Disadvantages of Unrelated Diversification Are

question 1

Multiple Choice

The two biggest drawbacks or disadvantages of unrelated diversification are

• A)the difficulties of passing the cost of entry test and the ease with which top managers can make the mistake of diversifying into businesses where competition is too intense.
• B)the difficulties of capturing financial fit and having insufficient financial resources to spread business risk across many different lines of business.
• C)the demanding managerial requirements and the limited competitive advantage potential due to lack of cross-business strategic fit benefits.
• D)ending up with too many cash hog businesses and too much diversity among the competitive strategies of the businesses it has diversified into.
• E)the difficulties of achieving economies of scope and conflicts/incompatibility among the competitive strategies of the company's different businesses.

Recognize the role of organizational culture in influencing behavior through clan control.

Identify the impact of market competition on organizational behavior and decisions.

Grasp the legal framework governing corporate behavior, with a focus on the Sarbanes-Oxley Act.

Comprehend the mechanisms of autocratic control within organizations.

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Definitions:

Electrons

Subatomic particles with a negative charge, found orbiting the nucleus of an atom.

Neutral Atoms

Atoms that have an equal number of protons and electrons, resulting in no overall charge.

Gain Or Loss

A financial term indicating the positive or negative difference between the value of something at two different times.

BE

An acronym that could stand for various terms depending on context, such as "Base Excess" in blood gas analysis, indicating the excess or deficit in the amount of base in the blood.