When a corporation pursues a related-constrained diversification strategy, financial controls may not add value to strategy implementation efforts since it is difficult to
A) use them without reducing cooperation among divisional managers.
B) transfer capital between units.
C) maintain an arms-length relationship between headquarters and the divisions.
D) identify which objective criteria to monitor.

Question

Quizplus · Accepted Answer

Financial controls can hinder cooperation among divisional managers in a related-constrained diversification strategy, where synergy and collaboration are crucial.

When a Corporation Pursues a Related-Constrained Diversification Strategy, Financial Controls