Which One of the Following Best Describes a Divisional Structure

question 106

Multiple Choice

Which one of the following best describes a divisional structure?

• A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources.
• B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
• C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
• D) Employees have two or more superiors, a project manager and a functional manager.
• E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

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Definitions:

Current Liability

Financial obligations that a company is required to pay within one year or within its normal operating cycle.

Current Maturities

The portion of a company's long-term debt that is due to be paid within the upcoming year.

Property Tax

Taxes levied by local governments based on the estimated value of property, including real estate and personal property.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.