Question

All of the following statements are correct about corporate strategy EXCEPT​

A. corporate strategy is primarily about the choice or direction for a firm as a whole and the management of its business or product portfolio
B. corporate strategy includes decisions regarding the flow of financial and other resources to and from a​ company's product lines and business units
C. corporate strategy is concerned with managing various product lines and business units for maximum value in a large​ multiple-business company
D. corporate strategy is defined as the concept that two businesses will generate more profits together than they could separately
E. corporate strategy addresses three key issues facing the corporation as a whole that include directional​ strategy, parenting​ strategy, and portfolio analysis

Answer 1

Corporate strategy is primarily about the choice or direction for a firm as a whole and the management of its business or product portfolio. It includes decisions regarding the flow of financial and other resources to and from a company's product lines and business units. The statement that two businesses will generate more profits together than they could separately is incorrect in the context of corporate strategy.

Step-by-step explanation:

Corporate strategy is primarily about the choice or direction for a firm as a whole and the management of its business or product portfolio. It includes decisions regarding the flow of financial and other resources to and from a company's product lines and business units. Corporate strategy is concerned with managing various product lines and business units for maximum value in a large multiple-business company.

However, corporate strategy is not defined as the concept that two businesses will generate more profits together than they could separately. This statement is incorrect because mergers and acquisitions are part of corporate strategy, but not the definition of it.

Corporate strategy also addresses three key issues facing the corporation as a whole, which include directional strategy, parenting strategy, and portfolio analysis.