Relative to the Functional Structure, the Divisional Structure

question 24

Multiple Choice

Relative to the functional structure, the divisional structure

• A) encourages decentralization.
• B) has a higher degree of work specialization.
• C) has a more pronounced division of labor.
• D) has excellent coordination within functions.
• E) results in an efficient use of resources.

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Definitions:

Planned Economy

An economic system where the government controls and regulates production, distribution, and prices.

Laissez-Faire Economy

an economic system with minimal government intervention, where transactions are dictated by private parties.

Central Direction

The control of economic or organizational activity by a central authority or government.

Past Income

The amount of money earned in preceding periods, often used to assess financial stability or creditworthiness.