Which of the Following,if True,would MOST Strongly Suggest That TLS

question 1

Multiple Choice

Which of the following,if true,would MOST strongly suggest that TLS should change its organizational structure to a product-based approach?

• A) The largest growth area for TLS is governmental contracts, which have buying procedures that are very different from those of other customers.
• B) TLS currently maintains separate accounting departments in each of its regions.
• C) To be effective, TLS managers need to be experts in at least one of the products that TLS sells.
• D) TLS hopes to build sustained relationships with customers, selling the same person academic tutoring, standardized test preparation, and admissions consulting.
• E) Communication between different marketing departments in different regions has been substandard.

---

Definitions:

Operating Income

Earnings from a company's core business operations, excluding costs and revenues from financing and investments.

Invested Assets

Definition: Assets that are used or held for investment purposes, which may include securities, real estate, and other investment vehicles.

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.

Operating Income

The profit earned from a firm's normal core business operations, excluding deductions of interest and tax.