A Consumer Products Firm with a Functional Structure Is Expanding

question 33

Multiple Choice

A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups, with most sales within one country.Which of the following should it eventually adopt to manage the new conditions most effectively?

• A)Geographic divisional structure
• B)Client divisional structure
• C)Matrix structure
• D)Product divisional structure
• E)Simple structure

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Definitions:

Statement of Income

A financial document that provides a summary of a company's revenues, expenses, and net income over a specific period.

Statement of Financial Position

A financial statement that details a company's assets, liabilities, and shareholders' equity at a specific point in time.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, as opposed to when they are incurred.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations and external investment sources.