A Strategy of Related Diversification Requires Most Firms to Organize

question 13

Multiple Choice

A strategy of related diversification requires most firms to organize around geographical areas or product lines.This type of organizational growth leads to ______________ structure.

• A) a divisional
• B) a functional
• C) a matrix
• D) an international

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Definitions:

Adverse Selection

A situation where sellers have information that buyers do not have, or vice versa, often leading to an inefficient market outcome.

Factory Owner

An individual or entity that holds the ownership of a manufacturing unit where goods are produced.

Average Product

In economics, the output per unit of input, such as labor or capital, calculated by dividing total production by the total quantity of the input used in production.

Local Factory

A manufacturing facility situated within a specific locality or geographic area, contributing to the local economy.