What Is Likely to Be the Result If a Domestic

question 23

Multiple Choice

What is likely to be the result if a domestic company that manufactures four different types of products changes from a functional structure to a divisional structure?

• A) Lower fixed costs
• B) Better coordination within a product area between different functional areas
• C) More technical development within functional areas
• D) More centralized decision making

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Definitions:

Manufacturers' Representatives

Individuals or businesses that sell manufacturers' products to wholesalers and retailers without taking ownership of the goods, operating on a commission basis.

Sales Administration

The process of overseeing and managing a company's sales operations, including planning, reporting, and goal setting.

Ethics

The branch of philosophy that deals with questions about morality, including the analysis of concepts like right and wrong, virtue and vice, and justice.

Pricing Strategies

Methods businesses use to set the selling price for their products or services, based on factors like cost of production, market demand, competition, and customer value perception.