Imagine you are operating a holding company like Berkshire Hathaway and you wanted to

identify the tradeoffs you were making in pursuing this kind of organizational structure.

What are some of the tradeoffs that you would have to accept?

Choose carefully. Remember that Canvas deducts incorrect answers from correct answers.

low synergies between businesses

increased scope of decisions for the central HQ

Selected Answer $-$ Incorrect

higher costs and operational expenses

inability to influence divisional executives' decisions as fully