An Important Feature of the Global Area Division Structure Approach

question 33

Multiple Choice

An important feature of the global area division structure approach is that:

• A) it is generally used by companies that are growing businesses and have broad product lines.
• B) it prevents division managers from catering to the tastes of the local market and making rapid decisions to accommodate environmental changes.
• C) it often signals a major change in company strategy because now international operations are put on the same level as domestic operations.
• D) it focuses on a product set and discovers where it can survive and subsequently distributes it to that region.

---

Definitions:

Parent-Subsidiary Organization

A corporate structure in which a parent company owns a controlling interest in one or more subsidiary companies, allowing for centralized governance and operational synergy.

Liabilities

Financial obligations or debts that a company or individual owes to others, which need to be settled over time.

Effectively Control

Effectively control in financial terms refers to the power to direct the financial and operational policies of an entity so as to gain benefits from its activities, often achieved through ownership, contracts, or other means.

Minimum Total Price

The lowest possible aggregate amount that can be charged or paid for a particular set of goods or services.