Under the Product Structure of Divisional Organization

question 33

Multiple Choice

Under the product structure of divisional organization,

• A)duplicating functions is inexpensive.
• B)decision making is decentralized.
• C)coordination across product lines is easy.
• D)companies suited to stable environments function best.
• E)task responsibilities may be ambiguous.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting wear and tear over time.

Cash Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, part of a company's cash flow statement.