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BUSA 4980 - Test 2 Practice Questions and Answers The term "conglomerates" refers to firms using which of the following forms of corporate-level strategy. a) unrelated b) related constrained c) related linked d) mix of related linked and unrelated ANSWER a Corporate-level strategy is concerned with and how to manage these businesses. a) whether the firm should invest in global or domestic businesses b) what product markets and businesses the firm should be in c) whether the portfolio of businesses should generate immediate above-average returns or should be troubled businesses which will create above-average returns only after restructuring d) whether to integrate backward or forward ANSWER b (T/F) Economies of scope are cost savings resulting from a firm successfully leveraging, either through sharing or transferring, some of its capabilities and competencies developed in one business to another business. ANSWER True The more "constrained" the relatedness of diversification:
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