List and describe three advantages of a divisional structure
What will be an ideal response?
Answer: In a divisional organization, corporate divisions operate as autonomous businesses under the larger corporate umbrella. A divisional structure allows the corporation to evaluate the performance of each division independently. Because the divisions are relatively autonomous, a firm can sell or eliminate a single division with minimal disruption to the remaining business operations. Finally, a divisional structure can create healthy competition. Divisions can share certain corporate-level resources. Divisions operate as autonomous businesses. The advantages include independent evaluation, ability to sell or disband with minimal disruption to the corporation, and the opportunity to compete and share resources.
You might also like to view...
Which of the following accounts could decrease as a result of adjusting entries?
a. Office Supplies b. Accumulated Depreciation–Buildings c. Wages Expense d. Revenue from Services
Answer the following statements true (T) or false (F)
The tax liability would be greater than tax expense whenever revenues are recognized for tax purposes in a different period than for published reporting purposes.
Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash inflows from operating activities to be reported on the statement of cash flows is:
A) $120,000. B) $125,000. C) $155,000. D) $115,000.
If the defendant does not answer the complaint, it will be dismissed
Indicate whether the statement is true or false