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) Need for knowledge sharing among specialists
D) Greater amounts of data and information to process

Question

Quizplus · Accepted Answer

A firm moves from a functional to a multidivisional structure primarily due to increasing diversification, coordination and control issues, and the need to process greater amounts of data and information. The need for knowledge sharing among specialists is typically addressed within a functional structure, not a reason to shift to a multidivisional structure.

Which of the Following Does NOT Cause a Firm to Move