Which of the Following Is a Difference Between the Product

question 55

Multiple Choice

Which of the following is a difference between the product division structure and the multidivisional structure?

• A)Divisions are independent in a multidivisional structure, but not in a product division structure.
• B)Vertical differentiation is increased in the product division structure, but not in the multidivisional structure.
• C)Support functions are centralized at the top of the organization in a multidivisional structure, but decentralized to the divisions in a product division structure.
• D)Horizontal differentiation is increased in the multidivisional structure, but not in the product division structure.

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Definitions:

Private Investment

Expenditures by private sector entities on capital goods that are used to produce goods or services in the future.

Government Spending

The total of all public sector expenditures, including public goods and services provided, and investments made by government agencies.

Federal Government

The national government of a federal country, where powers are divided among a central authority and constituent political units.

Private Investment

Expenditures by private sector entities on means of production, such as infrastructure or equipment, intended to yield future returns.