Compared to a Functional Structure, a Divisional Structure

question 84

Multiple Choice

Compared to a functional structure, a divisional structure:

• A) encourages decentralization.
• B) has a higher degree of work specialization.
• C) has a more pronounced division of labour.
• D) has excellent coordination across departments.
• E) results in an efficient use of resources.

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Definitions:

Venture Capital Firm

A company that invests in startups and early-stage companies with high growth potential in exchange for equity.

Entrepreneur

An individual who organizes, operates, and assumes the risk for a venture, innovating and transforming ideas into economically viable entities.

Tax Exposure

The degree to which an individual or organization is subject to taxes or the risk of tax-related liabilities.

Operating Working Capital

Operating Working Capital is a measurement of a company's operating liquidity, calculated as current assets minus current liabilities, indicating the short-term financial health and efficiency of operations.