Which of the Following Does NOT Cause a Firm to Move

question 116

Multiple Choice

Which of the following does NOT cause a firm to move from a functional structure to a multidivisional structure?

• A) Increasing diversification
• B) Coordination and control issues
• C) Need for knowledge sharing among specialists
• D) Greater amounts of data and information to process

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, which can lead to beneficial trade.

Specialize

The process by which individuals, firms, or countries concentrate their efforts on producing a limited variety of goods or services to gain efficiency and improve performance.

Domestic Surplus

The excess of a country's production over its domestic consumption, often leading to exports.

Domestic Shortage

A Domestic Shortage occurs when the quantity demanded of a good or service in a country exceeds the quantity supplied at the current market price, leading to scarcity.