The following are characteristics of a public conglomerate:
I.It is designed to operate various divisions for the long run.
II.It has an internal capital market wherein 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 are characterized by their diversified operations across different industries or sectors, designed for long-term operation (I). They often have an internal capital market where divisions compete for funding based on performance or strategic importance (II). A hierarchy of corporate staff is typically involved in evaluating the plans and performance of these divisions to ensure alignment with the conglomerate's overall strategy (III). Additionally, the compensation of divisional managers is commonly tied to the performance of their respective divisions, incentivizing them to optimize earnings and efficiency (IV).

The Following Are Characteristics of a Public Conglomerate