Which of the following statements is most likely to be true regarding a geographic divisional structure?
A) A geographic structure allows some functions to be centralized at one headquarters location and others to be decentralized to a regional level.
B) A geographic divisional structure is a divisional structure in which specialists from the support functions are combined into product development teams that specialize in the needs of a particular kind of product.
C) An organization using a geographic divisional structure employs a transfer pricing mechanism to transfer its products from one geographic division to the other geographic division.
D) Organizations that use geographic divisional structure operate in rich and dynamic environment.

Question

Quizplus · Accepted Answer

A geographic divisional structure divides the company based on geographic regions, allowing certain functions to be centralized at headquarters while others are decentralized to regional levels. This structure is particularly useful for global companies or those with operations in multiple locations, as it allows for effective management of local conditions and customer needs. Option B describes a product structure, Option C describes a transfer pricing mechanism, and Option D is too vague and subjective to be considered a likely statement.

Which of the Following Statements Is Most Likely to Be