Which of the Following Is True of Divisional Structures

question 77

Multiple Choice

Which of the following is true of divisional structures?

• A)They make it difficult for an organization to move faster if a new customer need arises.
• B)They seldom help organizations to make a move when a competitor introduces an important product.
• C)Managers find it difficult to make decisions that affect several functions in order to serve customer needs.
• D)They sometimes focus on their own customer groups or products to the exclusion of the company's overall mission.
• E)Duplicating functions in each division rarely adds to costs, so this structure is completely inexpensive for organizations.

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Definitions:

Ancillary Services

Supplementary services provided by companies that are not primary to their main business but enhance or support the overall consumer experience.

Ultimate Consumer

The ultimate consumer refers to the final buyer or user of a product or service who purchases it for personal, not business, use.

For-Profit Businesses

Businesses that are primarily focused on generating profits for their owners and shareholders.

Reseller Goods

Products that are bought and then sold by a business without any modification to the original product.