All of the following are potential disadvantages of the multidivisional structure except:
A) high bureaucratic costs.
B) conflict over resources.
C) transfer pricing problems.
D) inability to monitor divisions.

Question

Quizplus · Accepted Answer

The multidivisional structure allows for greater monitoring and control of divisions, so inability to monitor divisions is not a potential disadvantage. A, B, and C are all potential disadvantages of this structure, as it can lead to high bureaucratic costs, conflict over resources, and transfer pricing problems.

All of the Following Are Potential Disadvantages of the Multidivisional