Which of the Following Statements Comparing the Conglomerate (H-Form)and the Divisional

question 35

Multiple Choice

Which of the following statements comparing the conglomerate (H-form) and the divisional (M-form) approaches to organization design is FALSE?

• A)Both are based on the product form of departmentalization.
• B)Divisions in the H-form are unrelated, but in the M-form they are similar kinds of businesses.
• C)Managers in both forms coordinate extensively with each other.
• D)H-form managers have more autonomy than M-form managers.
• E)M-forms can share resources more easily than H-forms.

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Definitions:

Cash Inflow

The amount of money being transferred into a business, project, or account, usually from operational, investing, or financing activities.

Cash Inflows

The total amount of money received by a company or an individual, from various sources, over a period of time.

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it’s the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Investment Proposals

Formal plans or suggestions put forward for consideration or discussion, especially one concerning financial investment.