The following are characteristics of a public conglomerate: I) It is designed to operate various divisions for the long run. II) It has an internal capital market wherein each division competes for funds. III) A hierarchy of corporate staff evaluates divisions' plans and performance. IV) Divisional managers' compensation depends mostly on earnings of their respective divisions. I, II, and III I and II only I, II, III, and IV II, III, and IV only.