Which of the Following Is True About a Divisional Structure

question 82

Multiple Choice

Which of the following is true about a divisional structure?

• A) Organizing various product families within a division can increase functional duplication.
• B) It reduces economies of scale for the firm's functional activities.
• C) Cross-regional coordination within product families and within the division is often easier.
• D) It ensures that division objectives are well aligned with corporate objectives.

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Definitions:

Stock Warrants

Stock Warrants are derivatives that grant the holder the right to buy a company's stock at a specific price before the expiration date.

Consolidated Earnings

The aggregate amount of net income earned by a parent company and its subsidiaries, reported as a single figure in the parent's financial statements.

Diluted Earnings

Net income available to common shareholders, adjusted for the potential impact of convertible securities, options, and warrants, showing earnings per share if all convertibles were exercised.

Investing Section

Part of the cash flow statement that reports the acquisition and disposal of long-term investments and property, plant, and equipment.