A Divisional Structure by Geographic Area Is Most Appropriate When

question 99

Multiple Choice

A divisional structure by geographic area is most appropriate when

• A) organizations have similar branch facilities located in widely dispersed areas.
• B) an organization offers only a limited number of products or services.
• C) consumption patterns for its products and/or services are the same worldwide.
• D) the company's customers in different geographic locations have similar needs and characteristics.
• E) the firm serves one geographic area.

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Definitions:

Straight-Line Method

An accounting method of depreciation where a fixed amount is charged annually over the useful life of the asset.

Net Liability

Net liability refers to the total liabilities of an entity minus its assets, indicating a financial position where obligations exceed resources.