Which of the Following Is a Disadvantage of the Multidivisional

question 31

Multiple Choice

Which of the following is a disadvantage of the multidivisional structure?

• A)It makes it difficult to assess the profitability of the finn.
• B)It does not give corporate managers the time they need to contemplate wider long-term strategic issues.
• C)It makes it mandatory for corporate managers to allocate equal amounts of resources to all the divisions.
• D)It creates more scope for communication problems and information overload compared to other structures.
• E)It makes it complex for corporate managers to strike a balance between centralization and decentralization.

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