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Question
Which of the following statements is true regarding related diversification?
A) The bureaucratic costs associated with managing related diversification are much greater than those associated with unrelated diversification.
B) Considerably more communication and coordination are needed to create value from unrelated diversification than from related diversification.
C) A functional structure is most suitable for an organization that is pursuing a strategy of related diversification.
D) If unrelated diversification is to provide the gains comparable to those obtained from related diversification, a much larger corporate headquarters staff is required to coordinate interdivisional activities.
Answer
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