In divisional structures, the parent corporation typically acts as an external overseer to coordinate and control the various divisions.

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In a divisional structure, each division operates as a semi-autonomous unit with its own functional areas such as marketing, finance, and operations. However, the parent corporation still plays a role in coordinating and controlling the divisions, often through a central headquarters that provides support and guidance. Therefore, the parent corporation acts as an external overseer in a divisional structure.

In Divisional Structures, the Parent Corporation Typically Acts as an External