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This question analyzes corporate diversification. Assume a company has the following subsidiary units that reported the revenue amounts shown in parentheses: software development ($70
This question analyzes corporate diversification. Assume a company has the following subsidiary units that reported the revenue amounts shown in parentheses: software development ($70 million), furniture design and manufacturing ($65 million), textbook publisher ($90 million), and landscape design ($550 million). Which of the following statements are TRUE about the diversification of this company? Multiple true statements are possible -- Check all that apply. a) 90% of the company's total revenue comes from the largest subsidiary unit. b) 0.32% of the company's total revenue comes from the largest subsidiary unit. c) 32% of the company's total revenue comes from the largest subsidiary unit. d) 71% of the company's total revenue comes from the largest subsidiary unit. e) 55% of the company's total revenue comes from the largest subsidiary unit. f) Because such a large percentage of the company's revenue comes from one unit, the company is not very diversified. 4
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