Question

Which of the following statements is true regarding a multidivisional structure?

A) A multidivisional structure is the least suitable for an organization which produces a wide range of complex products.

B) A multidivisional structure decreases division of labor which ultimately decreases organizational effectiveness.

C) As an organization moves from functional to multidivisional structure, the level of vertical differentiation increases.

D) A multidivisional structure avoids duplication of organizational activities.

Answer

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