Which of the following is true about a divisional structure?
A) Organizing various product families within a division can increase functional duplication.
B) It reduces economies of scale for the firm's functional activities.
C) Cross-regional coordination within product families and within the division is often easier.
D) It ensures that division objectives are well aligned with corporate objectives.

Question

Quizplus · Accepted Answer

A divisional structure organizes the company based on product families or geographic regions, which allows for easier coordination within these units. However, this can also lead to functional duplication and reduced economies of scale. The alignment of divisional objectives with corporate objectives may not always be ensured.

Which of the Following Is True About a Divisional Structure