Which of the following is true of a conglomerate?
A) It has low bargaining power.
B) It is a business operating in several distinct industries.
C) Its parts depend on each other for components and processes.
D) It can never afford to take a long strike at any of its subsidiary.

Question

Quizplus · Accepted Answer

A conglomerate is a company that operates in multiple unrelated industries, such as General Electric or Virgin Group. Therefore, option B is the correct choice. Option A is incorrect since conglomerates tend to have high bargaining power due to their diverse operations. Option C is also incorrect since conglomerates usually have independent subsidiaries that do not depend on each other for components or processes. Option D is incorrect since taking a long strike at a subsidiary is a potential strategy for a conglomerate to improve its bargaining power or profitability.

Which of the Following Is True of a Conglomerate