Which of the Following Is a Potential Drawback of the Worldwide

question 76

Multiple Choice

Which of the following is a potential drawback of the worldwide area structure?

• A) This structure discourages division of the organization into autonomous entities.
• B) This structure makes it difficult to decentralize decisions regarding operations authority.
• C) This structure makes it difficult to realize location and experience curve economies.
• D) This structure reduces local responsiveness.

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Definitions:

Negative NPV

A condition where the net present value of all cash flows associated with a project or investment is negative, indicating that it is not financially viable.

Payback Period

The length of time it takes to recover the cost of an investment.

PI

A mathematical constant represented by the symbol π, approximated as 3.14159, or the ratio of a circle's circumference to its diameter in mathematics. Alternatively, if referring to "present indifference" or a concept specific to an industry or study, clarification is needed.

Positive NPV

An indicator that an investment's present value of net cash flows will exceed its initial cost, suggesting profitability.