Vermilion Inc. is a multinational conglomerate. It has three subdivisions that deal with apparel, consumer electronics, and healthcare products. Each subdivision has the authority to make its own business decisions. This scenario illustrates _____.

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Vermilion Inc. demonstrates horizontal structuring because it operates in multiple industries (apparel, consumer electronics, and healthcare products) through its subdivisions, each with the authority to make its own business decisions. Horizontal structuring involves diversification across different product lines or markets.