Question: Question 1 3 ( 1 point ) Corporate parenting refers to all of the following except the role that a diversified corporation plays in nurturing
Question point
Corporate parenting refers to all of the following except
the role that a diversified corporation plays in nurturing its component
businesses through the provision of top management expertise,
disciplined control, financial resources, and capabilities.
the help subsidiaries receive in performing better when they utilize
astute highlevel guidance from corporate executives.
the corporation's ability to provide generalized support resources so as
to create value by lowering companywide overhead costs by
eliminating duplication of efforts.
efforts to capitalize on the umbrella brands and enhance value
proposition across businesses.
efforts to judiciously segregate funds for each business in such a way
that keeps the money safe and discourages shifting funds across
business units.Economies of scope are cost reductions that flow from operating in multiple related businesses. are present whenever diversification satisfies the attractiveness test and the cost of entry test. arise mainly from strategic fit relationships in the distribution portions of the value chains of unrelated businesses. arise only from strategic fit relationships in the production portions of the value chains of sister businesses. are more associated with unrelated diversification t an related diversification.
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