What is likely to be the result if a domestic company that manufactures four different types of products changes from a functional structure to a divisional structure?
A) Lower fixed costs
B) Better coordination within a product area between different functional areas
C) More technical development within functional areas
D) More centralized decision making

Question

Quizplus · Accepted Answer

A divisional structure would allow for each product area to have its own specific team and resources, leading to better coordination and collaboration within each product area.

Answer: D 
 A divisional structure typically involves more centralized decision making, as each product area would have its own leadership team making decisions for that specific area.

What Is Likely to Be the Result If a Domestic