General Motors Groups Related Activities into Units Based on the Type

question 2

Multiple Choice

General Motors groups related activities into units based on the type of automobile that is produced: Buick, Cadillac, Chevrolet, and GMC (trucks) .Which type of departmentalization does this portray?

• A)Functional departmentalization
• B)Territory departmentalization
• C)Customer departmentalization
• D)Product departmentalization

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Definitions:

Voting Stock

Shares of a company that grant the shareholder the right to vote on company matters, such as electing the board of directors, at shareholder meetings.

Available-For-Sale

A classification for financial assets indicating that they can be sold in the future but are not held for active trading or intended to be held to maturity.

Net Income

This is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, often referred to as the bottom line.

Trading Securities

Trading securities are a form of investments that a company plans to buy and sell over a short period of time with the intention of profiting from the market movements.