One of the Reasons That Many Corporations Adopt the M-Form

question 35

Multiple Choice

One of the reasons that many corporations adopt the M-form of business structure is that it allows for:

• A) movement of decision rights to each division.
• B) the elimination of unethical incentive programs.
• C) companies to separate complementary product lines.
• D) a vertical chain of command in each business function.

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Definitions:

Consumer Goods

Goods that are produced and purchased for personal use, satisfying direct consumer wants and needs.

Opportunity Cost

Waiving the opportunity for improvement from multiple choices by deciding on one.

Linear Production

A type of production process where output increases at a constant rate as more inputs are added.

Production Possibility Frontier

A visual representation showcasing the maximum achievable outputs for two goods, predicated on a specified set of inputs like resources among others.