In a Diversified Company, the Strategy-Making Hierarchy Consists of

question 45

Multiple Choice

In a diversified company, the strategy-making hierarchy consists of

• A)corporate strategy and a group of business strategies (one for each line of business the corporation has diversified into).
• B)corporate or managerial strategy, a set of business strategies, and divisional strategies within each business.
• C)business strategies, functional strategies, and operating strategies.
• D)corporate strategy, business strategies, functional strategies, and operating strategies.
• E)its diversification strategy, its line of business strategies, and its operating strategies.

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Definitions:

Joint Control

A situation in which two or more parties have agreed to share control over an economic activity or entity.

Unilateral Control

The exclusive power or authority one entity or country holds over another, without requiring consent or cooperation from the latter.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without having control over those policies.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.