Problems in effectively managing the multidivisional structure include
A)distortion of information.
B)competition for resources.
C)transfer pricing.
D)all of these choices.
E)none of these choices.

Question

Quizplus · Accepted Answer

All of the choices listed are problems in effectively managing the multidivisional structure. Distortion of information can occur when divisions withhold information or provide biased information to gain advantages. Competition for resources can lead to divisions prioritizing their own interests rather than the overall success of the organization. Transfer pricing, where divisions charge each other for goods or services, can result in inflated prices and decreased efficiency. Therefore, managing a multidivisional structure requires addressing all of these potential problems.

Problems in Effectively Managing the Multidivisional Structure Include