The Success of the Multidivisional Structure as an Organizational Form

question 10

Multiple Choice

The success of the multidivisional structure as an organizational form was because:

• A)Line-and-staff structures allowed companies to serve to a broader geographical area
• B)The separation of strategic from operational decision allowed corporate management to exercise more effective strategic and financial control
• C)Divisions were forced to compete with one another for corporate resources
• D)It permitted decision making ot be decentralized

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Definitions:

Discounted Present Value

A method of valuing a future amount of money by applying a discount rate to adjust for time and risk.

Time Period

A specific duration for which economic data is measured or observations made.

Time-Value

The idea that having money now is more valuable than having the same sum in the future because of the potential to earn more over time.

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.