The Major Disadvantages of a Divisional Structure Include Increased Operating

question 45

True/False

The major disadvantages of a divisional structure include increased operating costs, higher potential for communication problems, and internal competition between divisions for resources.

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Definitions:

Holder in Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, thereby having certain protections.

Fixed Amount Requirement

A stipulation that requires a specific, predetermined amount of money to be paid or received in a transaction or contract.

Negotiable Instruments

Written documents guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer's name written on it.

Promissory Note

A financial instrument in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.