Compared with Divisionalized Structures,functional Structures Are Known To

question 79

Multiple Choice

Compared with divisionalized structures,functional structures are known to:

• A)create better economies of scale.
• B)be more responsive to local markets or clients.
• C)encourage employees to focus on the organization's superordinate goals.
• D)reduce conflict and coordination problems across work units.
• E)do all of the these things.

---

Definitions:

Consolidated Financial Statements

Financial statements that aggregate the financial position and results of a parent company and its subsidiaries, presenting as if the group were a single entity.

Goodwill

An intangible asset representing the excess of the purchase consideration over the fair value of net identifiable assets of a business acquired.

Business Combination

A transaction or event in which an acquirer gains control over one or more businesses, often involving mergers, acquisitions, or consolidations.

Impairment

A decrease in the recoverable amount of an asset to below its carrying amount on the balance sheet, resulting in a charge to the company's earnings.