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:

Marginal Benefits

The extra pleasure or benefit obtained from acquiring or creating an additional unit of a product or service.

Recreation Center

A facility provided for leisure activities which may include sports fields, swimming pools, and other amenities for public use.

Marginal Costs

Refers to the increase in total production cost that arises when the quantity produced is incremented by one unit.

Flood-Control

A set of measures implemented to prevent or reduce the damage caused by excessive water accumulation from rivers, seas, or heavy rainfall.