Firms Switch from a Functional Structure to a Multidivisional Structure

question 60

True/False

Firms switch from a functional structure to a multidivisional structure because greater levels of environmental complexity and uncertainty make it necessary for the firm to develop cooperative relationships with its stakeholders.

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Definitions:

Deceptive Advertising

Marketing practices that mislead or deceive consumers about the nature, characteristics, or benefits of a product or service.

Federal Trade Commission

A U.S. federal agency tasked with protecting consumers and promoting competition by preventing anticompetitive, deceptive, and unfair business practices.

Telemarketing Sales Rule

A regulation established to protect consumers from deceptive, abusive, or unfair telemarketing practices, including requirements on disclosures and consent.

Mail or Telephone Order Merchandise Rule

A Federal Trade Commission rule that requires sellers who solicit buyers through mail or phone orders to ship items within the time frame promised or, if no time is promised, within 30 days.