The Two Main Innovations in a Multidivisional Structure (Over a Functional

question 24

Multiple Choice

The two main innovations in a multidivisional structure (over a functional or product structure) are

• A) a matrix structure at the divisional level and a flat structure at the corporate level.
• B) a product structure at the divisional level and a functional structure at the corporate level.
• C) the organization of business units or companies in each industry in which it competes into one or more divisions and the creation of corporate-level positions to oversee the activities of divisional managers.
• D) self-contained divisions with operating responsibility and a group of divisional managers with collective strategic responsibility.
• E) a matrix structure at the divisional level and a functional structure at the corporate level.

---

Definitions:

Limited Temporary Basis

A restricted and short-term arrangement or condition, often applied to agreements, access, or usage rights.

Final Commitment

The ultimate pledge or decision made by a party in a process or agreement.

Warranty Terms

The conditions under which a manufacturer or seller agrees to repair, replace, or refund a purchased product within a specified time frame if it fails to meet stated quality and performance standards.

Accept the Objection

A technique in sales and negotiation where one acknowledges an objection raised by another party as valid, but then proceeds to address it or mitigate its impact.