Final answer:
False. In large diversified companies, market controls are not typically used to regulate independent business units.
Step-by-step explanation:
In large diversified companies, internal controls and mechanisms are more commonly employed to regulate independent business units rather than market controls. Market controls involve external market forces like competition and customer demand influencing business decisions. However, within a conglomerate or diversified company, various business units might operate in different markets or segments, making it challenging for external market controls to effectively regulate them all. Instead, internal controls such as performance metrics, managerial oversight, standardized processes, and central policies are implemented to align diverse units with the company's overarching goals and ensure compliance with organizational standards. These internal controls enable the company to maintain consistency, coordination, and strategic alignment across its independent units without relying solely on external market forces.
Correct Answer: False