Functional Structures Tend to Be Less Flexible, but More Innovative

question 90

True/False

Functional structures tend to be less flexible, but more innovative than divisional structures.

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Definitions:

Voluntary Winding Up

The process initiated by a company's shareholders to voluntarily dissolve the company and liquidate its assets for distribution.

Special Resolution

A shareholder resolution that requires at least a 75% majority vote to pass, often related to significant corporate actions.

Preference Shares

Shares that give their holders priority over common stockholders in terms of dividend payments and asset liquidation.

Liquidation

The process of winding up a company's affairs by selling off its assets to pay creditors.