Multidivisional Structures

question 30

Multiple Choice

Multidivisional structures

• A) are temporary.
• B) organize departments into larger divisions,often based on geography,product,and/or customer.
• C) bring together specialists from a variety of areas to work on a single project.
• D) make slower decisions.
• E) are less innovative but make quicker decisions.

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Definitions:

Adverse Selection

A situation where sellers have information that buyers do not, or vice versa, affecting transactions in a way that is disadvantageous to one party.

Cafeteria Plan

An employee benefit plan that allows workers to choose from a variety of pre-tax benefits, including health insurance, retirement plans, and cash.

Family Dental Coverage

A type of health insurance plan designed specifically to cover dental expenses for an individual and their family members.

Negative Externalities

Costs suffered by a third party due to the economic activities of others, not accounted for in the market price.