Chapter 8 Flashcards
1
Q
The most common organizational structure for implementing a corporate diversification strategy is the…
A
M-form or multidivisional structure.
It is create to checks and balances for managers to increase the probability that a diversified firm will managed in ways consistent with the interests of its equity holders.
2
Q
Characterstics of the divions are that they are
A
true profit-and-loss centers
U-form structure
