Which of the Following May Be True for a Company

question 17

Multiple Choice

Which of the following may be true for a company pursuing a strategy of unrelated diversification rather than a strategy of related diversification?

• A) The company has to achieve coordination between business units.
• B) The company has narrow organizational competencies.
• C) The company has superior strategic management and organizational design.
• D) The company has no bureaucratic costs that arise from the number of businesses in its portfolio.
• E) The company has no difficulty in keeping its corporate managers informed about the complexitities of each business.

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Definitions:

Military Commander

A high-ranking officer in the armed forces with authority and responsibility over military operations and personnel, often making strategic and tactical decisions.

Transcontinental Railroad

A network of railroad trackage that crosses a continental land mass, connecting the Pacific and Atlantic coasts of the United States, completed in 1869.

Union Pacific

A major railroad company in the United States, primarily operating in the western two-thirds of the country.

Central Pacific

Often refers to the central area of the Pacific Ocean, but can also denote the Central Pacific Railroad, a key portion of the First Transcontinental Railroad in the United States.