As the threat of corporate failure increases due to relatedness between a firm's business units,firms may decide to:
A) increase the firm's level of retained resources.
B) operate in more certain environments or constrain the level of activity sharing.
C) forego the benefits of synergy and divest business units.
D) pursue unproven product lines.

Question

Quizplus · Accepted Answer

Operating in more certain environments or constraining the level of activity sharing can help manage the risks associated with high relatedness between business units, reducing the threat of corporate failure.

As the Threat of Corporate Failure Increases Due to Relatedness