As a firm grows it may find that the various parts of the business are too large to effectively coordinate with a simple functional structure. In this case, the firm develops a(n):
A) SBU.
B) matrix structure.
C) multidivisional structure.
D) entrepreneurial structure.

Question

Quizplus · Accepted Answer

As the business grows and becomes more complex, a multidivisional structure may be necessary. This structure separates the company into multiple divisions, each with its own functional structure, allowing for better coordination and control.

As a Firm Grows It May Find That the Various