Royal Motor Corp. generates a major portion of its revenues by manufacturing luxury sports cars. However, the company also derives an insignificant percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. Which of the following terms best describes Royal Motor Corp.?
A) a conglomerate
B) a subsidiary
C) a dominant-business firm
D) a single-business firm

Question

Quizplus · Accepted Answer

Royal Motor Corp. is a dominant-business firm. A dominant-business firm derives between 70-95 percent of its revenues from a single business, but it pursues at least one other business activity. The dominant business shares competencies in products, services, technology, or distribution.