Which of the Following Is an Advantage of the Multidivisional

question 59

Multiple Choice

Which of the following is an advantage of the multidivisional structure?

• A)It prevents the duplication of functional resources.
• B)It provides scope for corporate managers to easily allocate skills or resources from one division to another.
• C)It eliminates the scope for information distortion.
• D)It makes it easier for the corporate office to identify managerial inefficiencies in the finn.
• E)It provides a clear and uniform authority relationship between corporate headquarters and the subordinate divisions.

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Definitions:

Stock Market Index

A statistical measure that shows changes in the stock market by tracking a selected set of stocks to represent a particular market or sector.

Project Cash Flows

Net amounts of cash that are to be received or paid out over the duration of a project, determining its profitability and feasibility.

Predictable

Capable of being foreseen or declared in advance with a high degree of certainty.

Correlated

When two variables have a mutual relationship that affects each other's movements or values.