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:

Express Authority

Power granted to an agent by explicit instructions from the principal, either verbally or in writing, defining the agent's tasks or limits.

Actual Authority

The specific powers that a principal explicitly grants to an agent in the context of an agency relationship.

Manifested

The demonstration or display of the existence or presence of something through observable evidence.

Nondelegable Duty

A legal principle that refers to obligations that cannot be transferred to another party and must be performed by the one originally obligated.