Which of the Following Is Not an Advantage of a Strategic

question 74

Multiple Choice

Which of the following is not an advantage of a strategic business unit (SBU) type of organizational structure?

• A) Divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies.
• B) Divisional executives can respond quickly to market changes and opportunities.
• C) Planning and control by the corporate office is more manageable.
• D) The corporate office is more removed from the individual divisions.

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Definitions:

Social Costs

The total cost to society, including both private costs borne by individuals and external costs affecting others not directly involved in a transaction.

Circular Flow Model

An economic model depicting how money moves through an economy between producers and consumers, illustrating the interconnectedness of different sectors.

Capital Goods

Long-term assets used by businesses to produce goods and services, such as buildings, machinery, and equipment.

Pierre-Joseph Proudhon

A French socialist philosopher and politician, best known for his declaration that "property is theft" in the context of his critique of the social injustices of his time.