Which of the Following Is an Advantage of a Divisional

question 57

Multiple Choice

Which of the following is an advantage of a divisional structure?

• A) Expertise focused on specific customers, products, and regions
• B) Economies of scale with efficient use of resources
• C) Reduced costs because of common resources and efforts across divisions
• D) Emphasis on the goals of the organization as a whole
• E) No scope for unhealthy rivalries within the organization

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Definitions:

Intangible Asset

An asset that lacks physical substance but is still identifiable and provides future economic benefit to the owner, such as patents, copyrights, and goodwill.

Business Combination

The process of merging two or more companies into one, through acquisitions, consolidations, or other forms of restructuring.

Specific Criteria

Different or particular standards or requirements that must be met for a certain condition, action, or process to be initiated or considered valid.

Recognition

The formal acknowledgment in accounting that a transaction or event affects the financial statements of a company.