A Divisional Structure

question 21

Multiple Choice

A divisional structure

• A) is organized around functional area departments.
• B) typically improves the performance of firms pursuing a strategy of vertical integration.
• C) facilitates the development of general managers.
• D) enhances centralized decision making.

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Definitions:

Liability

A legal responsibility or obligation, either financial or otherwise, that arises from actions or transactions.

Misrepresentation

A false statement or omission of a fact that induces another party to enter into a contract or transaction under false pretenses.

Product Liability Suit

A legal claim brought against a manufacturer or seller for producing or selling a faulty product that caused harm to the consumer.

Defective Product

An item that is not fit for its intended purpose due to manufacturing flaws, design defects, or inadequate warnings, potentially leading to consumer harm.