In a multidivisional structure, corporate headquarters can identify the divisions in which an investment of capital will yield the highest returns.

Question

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In a multidivisional structure, the corporate headquarters has the ability to analyze the performance of each division and allocate capital strategically to the divisions that can yield the highest returns. This is a key advantage of the multidivisional structure.

In a Multidivisional Structure, Corporate Headquarters Can Identify the Divisions