The BEST Multidivisional Structure to Use

question 66

Multiple Choice

The BEST multidivisional structure to use:

• A) is the competitive form.
• B) is the SBU form.
• C) is the cooperative form.
• D) depends on the degree of diversification.

---

Definitions:

Information Asymmetry

A situation where one party in a transaction has more or better information than the other, leading to an imbalance of power.

Goal Displacement

The phenomenon whereby the primary goal is overshadowed by secondary goals, often leading to a shift in focus or purpose.

Resource Dependency

A theory suggesting that organizations are in constant need of resources from their environment and must manage dependencies and relations with other entities to obtain these resources.

Consumer Misunderstanding

Occurs when consumers have an incorrect perception or comprehension of a product, its benefits, or its terms.