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:

Duty Of Loyalty

A legal obligation requiring individuals to act in the best interests of another party or entity, typically referring to corporate officers and directors.

Fiduciary

As a noun, a person having a duty created by his or her undertaking to act primarily for another’s benefit in matters connected with the undertaking. As an adjective, a relationship founded on trust and confidence.

Corporate Office

The main or headquarters location of a company where key managerial and executive activities are conducted.

Shareholders Consent

The approval or agreement of shareholders, often required for significant corporate actions.