Final answer:
A public conglomerate typically operates multiple divisions for the long run, has an internal capital market for funding competition, a system for evaluating divisions, and ties divisional managers' compensation to their unit's earnings. The correct answer reflecting these characteristics is I, II, III, and IV.
Step-by-step explanation:
The characteristics of a public conglomerate can include a variety of strategic and operational structures. Option I indicates that the conglomerate is designed to operate various divisions for the long run, which aligns with the nature of conglomerates being large corporations with multiple smaller companies in unrelated industries. Option II describes an internal capital market where divisions compete for funding, which is common in diversified corporations where resources are allocated based on division performance and strategic importance. Option III states that there is a hierarchy of corporate staff to evaluate division plans and performance, a typical structure for ensuring corporate governance and oversight in conglomerates. Lastly, option IV suggests that divisional managers’ compensation is primarily based on the earnings of their respective divisions, incentivizing management to focus on their division's profitability. Therefore, the correct answer to the characteristics of a public conglomerate is c. I, II, III, and IV.