Which of the Following Is NOT a Strategic Disadvantage of the Divisional

question 34

Multiple Choice

Which of the following is NOT a strategic disadvantage of the divisional organizational structure?

• A) Makes policy consistency a known standard
• B) Increases costs incurred through duplicate functions
• C) Creates difficulty maintaining overall corporate image
• D) Fosters potentially dysfunctional competition for corporate-level resources

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Definitions:

Short-term Debt

Obligations and borrowings due to be paid within one year, critical for assessing a company's liquidity.

Disclosure Note

Supplementary information provided in financial statements, explaining the basis for certain accounting policies, detailing specific financial figure backgrounds.

Probable Loss

An anticipated financial loss that is likely to occur because of existing conditions or events.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and stockholders' equity at a specific point in time.