Which of the Following Statements About M-Division Firms Is True

question 55

Multiple Choice

Which of the following statements about M-division firms is true?

• A) The early M-division firms first emerged in the late 1900s.
• B) The M-division structure is closely associated with Alfred Chandler.
• C) In an M-division structure, the firm is divided into a few functional areas.
• D) Using their size, M-division firms were able to cut costs.

---

Definitions:

Insurance Plan

An insurance plan refers to a contract between an individual and an insurance company, wherein the company agrees to compensate the individual for specified losses, damages, illness, or death in return for payment of a premium.

Medicare Payroll Tax

A tax collected from both employees and employers to fund the Medicare program, which provides health insurance to individuals aged 65 and older and to some younger people with disabilities.

Capital Gains Tax

A tax on the profit realized from the sale of a non-inventory asset that was greater than the purchase price, typically stocks, bonds, precious metals, and property.

Junk Foods

Foods with low nutritional value, typically high in fats, sugars, salt, and calories.