Which Form of Departmentalization Increases the Risk of Duplication and Underutilization

question 146

Multiple Choice

Which form of departmentalization increases the risk of duplication and underutilization of resources?

• A)Divisional structure
• B)Functional structure
• C)Simple structure
• D)Matrix structure
• E)Network structure

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Definitions:

Functional Currency

The primary currency of the primary economic environment in which an entity operates, usually the local currency or the currency of the main revenue-generating activities.

Translation Rate

The exchange rate used to convert the financial statements of a foreign subsidiary into the currency of the parent company.

Functional Currency

The currency of the primary economic environment in which an entity operates, used for reporting financial results.

Foreign Operation

A business or branch of a company that operates in a country different from the country where the company is headquartered.