A Diversified Company Has a Parenting Advantage When

question 36

Multiple Choice

A diversified company has a parenting advantage when

• A) it is more able than other companies to boost the combined performance of its individual businesses through high-level guidance, general oversight, and other corporate-level contributions.
• B) it is more able than other companies to create an extensive collaborative effort among different specialties among different geographic locations.
• C) it results in supporting short-term economic shareholder value.
• D) managing a set of fundamentally similar businesses operations in fundamentally similar industries and inert environments.
• E) All of these.

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Definitions:

Trade Restrictions

Measures implemented by governments to control or limit the flow of goods and services across borders, including tariffs, quotas, and import bans.

Domestic Supply

The total amount of goods and services that are produced within a country's borders and available for domestic consumption or export.

International Specialization

A method where countries or regions focus on producing goods and services they are most efficient at, to enhance global trade efficiency.

Economies Of Scale

The reduction in cost per unit of goods or services produced as the scale of output increases.