A Divisionalized Structure Is Recommended Mainly For

question 40

Multiple Choice

A divisionalized structure is recommended mainly for:

• A)stable environments.
• B)diverse environments.
• C)munificent environments.
• D)integrated environments.
• E)none of these environments.

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Definitions:

Working Capital

The difference between a company's current assets and its current liabilities, indicating the short-term liquidity of the business.

Income Tax Rate

The proportion of earnings handed over to the government as tax.

After-Tax Discount Rate

The discount rate that takes into account the effect of taxes on the net income from an investment.

Straight-Line Depreciation

A tactic for parceling out the expense of a tangible asset through its effective duration in equal yearly quotas.