In a Multidivisional Structure

question 25

Multiple Choice

In a multidivisional structure

• A) support functions, such as accounting, are centralized at the top of the organization.
• B) corporate headquarters staff have operating responsibility.
• C) divisional managers have overall corporate strategic responsibility.
• D) corporate headquarters is responsible for overseeing the company's long-term plans and providing guidance to divisional managers.
• E) financial controls are necessarily weak.

Understand the role of divisional managers in decision-making concerning investments and fixed assets.

Comprehend the impact of divisional performance measures on managerial motivation and investment decisions.

Understand the concept and methods of transfer pricing within decentralized operations.

Learn about the DuPont formula and its application in measuring business performance.

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