The following are characteristics of a public conglomerate:
I. they are designed to operate various divisions for the long run.
II. has an internal capital market where each division competes for funds.
III. a hierarchy of corporate staff evaluates divisions' plans and performance.
IV. divisional managers' compensation depends mostly on earnings of their respective divisions.
A) I and II only
B) I, II and III
C) II, III and IV only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

Public conglomerates typically have a long-term operational strategy (I), an internal capital market for resource allocation (II), a corporate hierarchy for evaluating divisions (III), and compensation structures for divisional managers based on divisional performance (IV).

The Following Are Characteristics of a Public Conglomerate