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Which of the following best describes the multidivisional structure? Multiple Ch

ID: 359389 • Letter: W

Question

Which of the following best describes the multidivisional structure? Multiple Choice It is a highly centralized organizational structure, where top executives retain authority for most strategic and operating decisions and keep a tight rein on business-unit heads. It is a structure that combines two or more organizational forms, with multiple reporting relationships. It is a decentralized structure consisting of a set of operating divisions organized along business, customer, product, or geographic lines, and central corporate headquarters. It consists of a central executive who handles major decisions and oversees all operations with the help of a small staff It is organized along functional lines, where a function represents a major step in the firm's value chain

Explanation / Answer

ANSWER: It is a decentralized structure consisting of a set of operating divisions organized along business, product or geographic lines, and central corporate headquarters.

The central corporate headquarters allocates resources, monitors divisional activities and provides support functions.