Corporations will emphasize output controls when they are following a strategy of
A) concentric diversification.
B) conglomerate diversification.
C) retrenchment.
D) divestment.
E) vertical integration.

Question

Quizplus · Accepted Answer

Conglomerate diversification involves a corporation expanding into areas that are unrelated to its current business. Because these new areas are often unfamiliar, it's difficult to manage the processes or input controls effectively. Therefore, corporations tend to emphasize output controls, focusing on the results or outcomes of these diversified segments rather than trying to manage every specific process.

Corporations Will Emphasize Output Controls When They Are Following a Strategy