Which of the following does NOT cause a firm to move from a functional structure to a multidivisional structure?
A) Increasing diversification
B) Coordination and control issues
C) Decreasing sales revenues
D) Greater amounts of data and information to process

Question

Quizplus · Accepted Answer

Decreasing sales revenues would not necessarily lead to a shift from a functional to a multidivisional structure. The other options all suggest a need for better coordination and control of diverse business units, which is a key advantage of the multidivisional structure.

Which of the Following Does NOT Cause a Firm to Move