The Benefits of a Multidivisional Structure Include the Fact That

question 34

True/False

The benefits of a multidivisional structure include the fact that the firm can avoid duplicating activities and may benefit from scale economies in activities such as marketing and finance.

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Definitions:

Averaging Judgments

The method of combining multiple opinions or estimates to produce a single, more reliable judgment, often used in decision-making processes.

Ringelmann Effect

A phenomenon where individual productivity decreases as the number of people in a group increases.

Social Loafing

The phenomenon where individuals in a group contribute less effort than they would when working alone, due to a diffusion of responsibility.

Coordination Losses

Inefficiencies that occur when individuals working in a group fail to synchronize their actions or contributions optimally.