Consider a conglomerate, that is, a business that covers multiple sectors, for example, hotels, the film industry, and manufacturing. Consider these business ran as a conglomerate (that is, together) or separately (that is, each with their own CEO). Which alternative is better? Choose the most plausible answer.

A) Conglomerate is better, because separate business are more difficult to govern.

B) The separate businesses, because losing business will not be cross-subsidized, and separate CEOs will have expertise in running each business (versus a conglomerate CEO, that may not be an expert on separate domains).

C) Separate businesses are better because there is a tax advantage.

D) The conglomerate is better, because their size will make them a market force that is more difficult to counteract by competition.