Which of the Following Is NOT an Advantage of Organizing

question 90

Multiple Choice

Which of the following is NOT an advantage of organizing using a product structure?

• A)Allows functional managers to become familiar with a wide variety of products
• B)Helps managers choose business level strategies to differentiate their products
• C)Frees up corporate managers from the need to supervise the daily activities of the division
• D)Allows corporate managers to choose corporate level strategies
• E)Increases customer responsiveness by divisional managers

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Definitions:

Accumulated Depreciation

The total amount of a tangible asset’s cost that has been allocated as depreciation expense since the asset was put into use.

Fair Value

The estimated market price of an asset or liability, reflecting the price at which an orderly transaction would take place between market participants.

Limited Partnerships

Limited partnerships are business entities with one or more general partners managing the business and limited partners who provide capital but have limited liability.

Corporations

Legal entities that are separate and distinct from their owners, established to conduct business, earn profit, and be endowed with legal rights.