Why does a conglomerate have higher ability to take on a long strike at any subsidiary?
A) A few parts of its business are large relative to others.
B) Its parts do not depend on each other for components or processes.
C) It has low bargaining power.
D) It deals with a single union and has contracts with the same expiration.

Question

Quizplus · Accepted Answer

A conglomerate consists of several subsidiaries that operate in diverse industries, and each of them follows different business models. The absence of interdependence among its subsidiaries implies that a long strike at any one of them would not affect the production of others. As a result, the conglomerate can sustain such a strike better than a vertically integrated firm where a strike at one unit can affect the entire production process. Thus, option B is the correct answer.

Why Does a Conglomerate Have Higher Ability to Take on a Long