Which of the Following Is Not an Advantage of the Divisional

question 119

Short Answer

Which of the following is not an advantage of the divisional structure?
Activities may be duplicated across divisions.
Training for top management is encouraged.
Accountability is increased.
Developing expertise in the various divisions.
Change and expansion are facilitated.

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Definitions:

Fixed Assets

Long-term tangible assets used in operation of a business that are unlikely to be converted into cash within a short period.

Consolidated Financial Statements

Financial statements that represent the aggregate financial position and results of operations for a parent company and its subsidiaries as a single economic entity.

Combined Entity

A business entity that results from the combination of two or more separate entities through merger, acquisition, or another method, leading to consolidation for financial reporting purposes.

Business Combination

A transaction or other event in which an acquirer gains control of one or more businesses, typically involving mergers, acquisitions, or consolidations.