The Divisional Head of an Organization Decides to Set Up

question 75

True/False

The divisional head of an organization decides to set up the division's technical support center in another country in order to lower costs. This is an example of a functional-level strategy.

---

Definitions:

Economies Of Scale

The cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale.

Law Of Diminishing Returns

An economic principle stating that adding more of one factor of production, while holding others constant, will at a certain point yield lower incremental per-unit returns.

Economies Of Scale

The financial benefits that businesses achieve because of their size of operation, generally seeing a reduction in cost per unit of output as the scale expands.

Medicine And Dentistry

Fields of study and professional practice focused on maintaining and restoring human health through the treatment of diseases and conditions affecting the body and oral health, respectively.