Which of the Following Is NOT an Effect of an Extensively

Multiple Choice

Which of the following is NOT an effect of an extensively diversified company with multiple business units?

A) It leads managers to base important resource-allocation decisions on a superficial analysis of each business unit's competitive position.
B) It makes it easier for corporate managers to remain informed about the complexities of each business.
C) Managers simply do not have the time to assess the business model of each unit.
D) The distance from the day-to-day operations may catch corporate managers unaware of information that is hidden by business-unit managers who want to protect their own jobs.
E) As organizational problems increase, the time and effort spent by top managers to solve them increases bureaucratic costs and cancels out the profit-enhancing advantages of pursuing diversification.