Question

Lito works for a business that is part of a large corporation with many diverse business lines that operate autonomously. Lito’s group designs and manufactures playground equipment, but the corporation also owns asphalt paving companies, a producer of modular housing, a small amusement park, and a real estate firm. Given this, it seems likely that the parent corporation that owns this diverse portfolio of businesses uses a ______ structure.

Answer 1

Answer: Conglomerate structure

                           

Explanation: In simple words, conglomerate structure refers to the structure under which many entities operate in different industries under a single corporation. In other words, it is a different name for parent subsidiary relationship.

In the given case, Lito group owns different firms in different industries. Hence from the above we can conclude that the group uses conglomerate structure.