In Firms with Centralized Authority, Each Business Unit Is Treated

question 101

True/False

In firms with centralized authority, each business unit is treated as if it is a completely separate and independent organization.

---

Definitions:

Competitive Scope

Competitive scope involves the breadth, domain, or range of arenas in which a company chooses to compete, determining its market reach and focus.

Divestiture Strategy

A business strategy involving the sale, closure, or spinoff of a company division or segment to refine its core operations or generate capital.

Corporate Strategy

The overall direction and scope of a corporation, including how it selects and manages its businesses and investments to achieve long-term goals.

Safety Practices

Protocols and actions implemented to ensure the health and safety of employees and to prevent workplace accidents and injuries.