In the Competitive Form of the Multidivisional Structure, the Focus

question 125

Multiple Choice

In the competitive form of the multidivisional structure, the focus of headquarters is on all the following EXCEPT

• A) integration.
• B) performance appraisal.
• C) resource allocation.
• D) long range planning.

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Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal amount is repaid.

Maturity

The expiration date of a financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Coupon Rate

The annual interest rate paid by bond issuers on the bond's face value.

Duration

A financial metric that indicates the sensitivity of a bond's price to changes in interest rates, commonly measured in years.