All of the Following Are True About Conglomerates EXCEPT

question 93

Multiple Choice

All of the following are true about conglomerates EXCEPT:

• A) They follow the unrelated diversification strategy.
• B) They are able to overcome institutional weaknesses such as a lack of capital markets in emerging economies.
• C) Less than 70 percent of their revenues come from a single business.
• D) They are likely acquisition targets for large single-business firms.

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Definitions:

Environmental Force

External factors such as social, economic, technological, competitive, and regulatory conditions that affect an organization's ability to operate effectively.

Communicate

To convey information or express thoughts and ideas clearly to someone else through speech, writing, or other forms of media.

Exchange

The act of giving one thing and receiving another in return, especially in terms of goods, services, or monetary currency.

Environmental Force

External factors such as social, economic, technological, competitive, and regulatory conditions that affect an organization's operations and decisions.