The Multidivisional Structure Was Initially Designed to Produce Three Major

question 82

Multiple Choice

The multidivisional structure was initially designed to produce three major benefits over the functional form. Which of the following is NOT one of the three benefits?

• A) aligning the corporate structure with the demands of global expansion
• B) more accurate monitoring of the performance of each business
• C) facilitation of comparison between divisions
• D) stimulating managers of poorly performing divisions to look for ways of improving performance

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Definitions:

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by government bonds.

Recessionary Economy

An economic condition characterized by a significant decline in general economic activity over a sustained period.

Boom Economy

A phase of economic expansion characterized by rapid growth, increased production, and elevated consumer spending.

Variance

A measure of the dispersion or spread of a set of data points around their mean value; in finance, it's often used to measure volatility.