The ultimate test of the value of a corporate-level strategy is whether:
A)the corporation earns a great deal of money
B)the top management team is satisfied with the corporation's performance
C)businesses in the portfolio are worth more under the management of the company in question than they would be under any other ownership
D)businesses in the portfolio increase the firm's financial returns

Question

Quizplus · Accepted Answer

The ultimate test of a corporate-level strategy is whether the businesses in the portfolio are worth more under the management of the company in question than they would be under any other ownership. This is because the value of a corporate-level strategy lies in the ability of the parent company to add value to the businesses in its portfolio beyond what those businesses could achieve on their own or under another owner. Earning a great deal of money, top management team satisfaction, and increasing financial returns are important, but only insofar as they contribute to the overall objective of adding value to the portfolio of businesses.

The Ultimate Test of the Value of a Corporate-Level Strategy