All of the Following Are Advantages of the Divisional Structure

question 44

Multiple Choice

All of the following are advantages of the divisional structure except

• A) the structure facilitates the development of expertise in various areas of the company.
• B) the structure encourages training for top management.
• C) the structure increases accountability.
• D) the structure accommodates change and expansion.
• E) the structure focuses attention on the key activities that must be performed.

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Definitions:

Profit Center

A unit or department that incurs costs and generates revenues.

Revenue Center

A division or unit within a business responsible for generating significant income.

Departmental Reports

Internal documents that break down business performance by departments, aiding in analyzing specific areas of a company.

Controlling

Controlling refers to management activities that ensure the organization's goals are consistently being met in an effective and efficient manner.