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:

Current Liabilities

Obligations or debts a company is expected to settle within one fiscal year or its operating cycle, whichever is longer, including accounts payable and short-term loans.

Debt Guarantees

Debt guarantees refer to commitments made to pay back a loan or debt if the original borrower fails to do so, often provided by a third party.

Contingent Liabilities

Liabilities that may occur depending on the outcome of a future event.

Contingent Liability

A potential financial obligation that may occur, depending on the outcome of a future event.