Which of the Following Is a Disadvantage of Growth by Means

question 4

Multiple Choice

Which of the following is a disadvantage of growth by means of external growth strategies?

• A) diversification of business risk
• B) economies of scale
• C) getting access to proprietary products or services
• D) reducing competition
• E) antitrust implications

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Definitions:

Business Plans

Detailed documents that outline a company's objectives, strategies, and financial projections.

Decentralised Firms

Companies that grant a high degree of autonomy to their subdivisions or units, allowing for decision-making and operations to be managed locally.

Goal Congruence

The alignment of individual objectives with the overall objectives of the organization, ensuring that all members are working towards the same goals.

Transfer Price

The pricing of goods, services, or tradable assets between affiliated divisions within the same organization.