The Most Centralized and Most Costly Form of the Multidivisional

question 101

Multiple Choice

The most centralized and most costly form of the multidivisional structure is the:

• A) integrated.
• B) competitive.
• C) SBU.
• D) cooperative.

---

Definitions:

Asset Allocation

The strategy of distributing investments among various financial categories to manage risk and optimize returns.

Investment Committee

An investment committee is a group of professionals responsible for making decisions regarding the investment strategy of an organization or fund.

Passively Managed

Investment strategies that aim to replicate the performance of a specific index or benchmark as closely as possible, without active decision-making by managers.

Equity Index

A benchmark that represents the performance of a group of stocks, indicating the overall trend in the equity market.