Which of the Following Is an Advantage of Product Departmentalization

question 100

Multiple Choice

Which of the following is an advantage of product departmentalization?

• A) It allows managers and workers to specialize in one area of expertise.
• B) It makes cross-department coordination less problematic.
• C) It reduces costs by reducing duplication.
• D) It focuses an organization on customer needs.

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Definitions:

Non-Controlling Interest

represents the portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company, reflecting the minority shareholders' claim on the subsidiary's assets and earnings.

Subsidiary

A company controlled by another company, known as the parent company, usually through ownership of more than 50% of its voting stock.

Indirect NCI

An accounting term referring to the portion of equity in a subsidiary not directly attributable to the parent company, calculated on a proportional basis.

Ownership Interest

A stake or share in an asset or entity, giving the holder a claim to a portion of its equity or assets and possibly a share in its profits.