Which One of the Following Best Describes a Divisional Structure

question 3

Multiple Choice

Which one of the following best describes a divisional structure?

• A) Work is divided into subunits on the basis of such functions as manufacturing and marketing.
• B) Most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
• C) Most appropriate for small, entrepreneur-dominated company with one or two product lines that operates in a small niche market, with employees acting as jack-of-all trades.
• D) Employees having two or more superiors, a project manager and a functional manager.
• E) Most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

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Definitions:

Effective Tax Rate

The average percentage of income paid to the government in taxes, considering all deductions and credits.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Deferral of Taxes

The postponement of taxes to a future period, commonly used in retirement savings plans and investment accounts.

Traditional Retirement Plan

A retirement savings plan that offers tax advantages to the saver, typically involving pre-tax contributions that grow tax-deferred until withdrawals begin at retirement.