With Regard to the Issue of Geographic Vs

question 116

Multiple Choice

With regard to the issue of geographic vs. product departmentalization, it is correct to say that

• A) it is generally fairly easy for managers to decide whether to use geographical or product departmentalization.
• B) geographic departmentalization reduces the likelihood of duplicate production and other facilities.
• C) geographic departmentalization may lead to compartmentalization of knowledge in each geographic area.
• D) many years ago it made more sense to use product departmentalization, but now more and more companies are moving to geographic departmentalization.
• E) PepsiCo was formerly organized around product areas, but it recently moved to geographic departmentalization.

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Definitions:

Total Value

The overall value of an asset, investment, or portfolio, taking into account all relevant financial factors.

Utility

An indicator of pleasure, contentment, or advantage gained by a person from the use of products and services.

Productivity

The efficiency at which goods or services are produced, often measured as the ratio of output to inputs in the production process.

Separating Equilibrium

A situation in game theory where different types of players choose different strategies, allowing them to be distinguished based on their actions.