Which Is an Advantage of the Divisional Structure

question 205

Multiple Choice

Which is an advantage of the divisional structure?

• A) Concern for customers' needs is high.
• B) There is little duplication of services across divisions.
• C) There is good coordination across divisions.
• D) Top management retains tight control of the organization.
• E) There is no competition for corporate resources.

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Definitions:

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls.

Inferior Goods

Goods for which demand decreases as consumer income rises, in contrast to normal goods, where demand increases with higher incomes.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the sensitivity of consumers to price changes.

Quantity Supplied

The total amount of a specific good or service that is available to consumers at a given price point and time.