Which of the following is NOT a result of overdiversification?
A) Executives do not have a rich understanding of all of the firm's business units.
B) Managers emphasize strategic controls rather than financial controls.
C) Firms use acquisition as a substitute for innovation.
D) Managers become short-term in their orientation.

Question

Quizplus · Accepted Answer

Overdiversification typically leads to a focus on financial controls rather than strategic controls, as firms try to manage the complexity and performance of diverse business units.

Which of the Following Is NOT a Result of Overdiversification