One of the reasons that Asian conglomerate business groups continue to grow and those in the United States are seen to be unfocused and unlikely to succeed is that
A) Asian conglomerates have a single corporation with a wide set of wholly owned subsidiaries.
B) U.S. conglomerates are made up of a set of legally separate corporations, each with its own board of directors and shareholders.
C) Asian conglomerates are made up of a set of legally separate corporations, each with its own board of directors and shareholders.
D) Asian conglomerates are structured similarly to those in the United States and Europe.

Question

Quizplus · Accepted Answer

The business groups in Asia are structured in a way that offers the benefits of being in a business with a vast range of competencies without some of the costs found in conglomerates in the United States, Canada, and Western Europe. A key difference is that while a conglomerate that is based in the United States, Canada, or Western Europe is a single corporation with a wide set of wholly owned subsidiaries, a conglomerate in Asia is made up of a set of legally separate corporations. Each of these corporations has its own board of directors and shareholders, but it is tied to the conglomerate since one of its major owners also owns part of the other corporations in the conglomerate. For example, the Tata group in India is comprised of over 100 separate companies. This type of hybrid structure allows the companies to have a degree of independence but also the benefits of size and power.

One of the Reasons That Asian Conglomerate Business Groups Continue