One of the key questions that a multibusiness firm needs to consider is the degree of relatedness between businesses in the firm. Ideally, the value that is generated should be more than the sum of the businesses - this is known as
A) diversification
B) synergy
C) optimization
D) satisficing

Question

Quizplus · Accepted Answer

Synergy refers to the concept where the combined value and performance of two or more businesses is greater than the sum of the individual parts, which is what multibusiness firms aim for when considering relatedness between businesses.

One of the Key Questions That a Multibusiness Firm Needs