A Divisionalized Structure Works Best Where the Organization

question 91

Multiple Choice

A divisionalized structure works best where the organization:

• A)has few employees.
• B)operates in one market with one product and one client group.
• C)wants to assign the most power to executives responsible for technical expertise in the organization.
• D)is expanding into several distinct product and/or client groups.
• E)wants to maintain a strong centralized control over business activities.

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Definitions:

Database

A systematic collection of data, organized so that it can easily be accessed, managed, and updated.

Trademark

A recognizable sign, design, or expression that identifies products or services of a particular source from those of others.

Equity in Subsidiary Earnings

The share of income from a subsidiary that is reflected in the parent company's income statement.

Consolidated Financial Statements

Consolidated financial statements are a comprehensive reporting of a parent company’s financial activities, including its subsidiaries, presenting it as a single economic entity.