Which of the Following Is Not a Benefit of Divisional

question 131

Multiple Choice

Which of the following is not a benefit of divisional structures?

• A) Focus on the customers
• B) Managers have the flexibility to make decisions that affect several functions to meet customers' needs
• C) Can move faster if a new customer need arises
• D) Can respond faster to competition
• E) Possible duplication can add to costs

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Definitions:

Monopoly Power

The ability of a single supplier to control market prices and exclude competition in a particular market.

Natural Monopolies

Industries where a single firm can supply a product or service to an entire market at a lower cost than two or more firms.

Marginal Cost

The financial outlay for manufacturing an additional unit of a product or service.

Average Cost

Average cost refers to the total cost of production divided by the total quantity produced, indicating the cost on a per-unit basis.