The Control Issue in Managing the Multidivisional Structure Is

question 56

Multiple Choice

The control issue in managing the multidivisional structure is

• A) how much authority should be centralized at corporate headquarters.
• B) how much authority should be decentralized to the divisions.
• C) how much authority should be given to each functional unit.
• D) how much authority should be centralized at corporate headquarters and decentralized to the divisions.
• E) how much authority should be given to corporate division heads.

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Definitions:

Reporting Tests

Procedures or checks utilized to ensure financial information is accurate, complete, and in compliance with regulations.

Quantitative Thresholds

Fixed numerical limits or criteria used to trigger certain actions or classify objects in financial and statistical contexts.

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Reportable

Information or data that must be disclosed or submitted as required by law, regulations, or organizational policies.