Which of the Following Is an Advantage of a Divisional

question 16

Multiple Choice

Which of the following is an advantage of a divisional structure?

• A) expertise focused on specific customers, products, and regions
• B) economies of scale with efficient use of resources
• C) reduced costs because of common resources and efforts across divisions
• D) emphasis on the goals of the organization as a whole
• E) no scope for unhealthy rivalries within the organization

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Definitions:

Equipment Purchase

The acquisition of physical assets, such as machinery or tools, that are used in the operations or production processes of a business.

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as an annual percentage of the principal.

Interest Payable

The amount of interest expense that has accrued but has not yet been paid by the company.

Accounts Payable

An accounting entry representing an entity's obligation to pay off a short-term debt to its creditors or suppliers.