As illustrated by Textron Inc., when a firm uses the __________ structure hierarchy, the headquarters might rely on strategic controls to set rate-of-return targets and financial controls to monitor divisional performance relative to those targets and then allocate cash flow to the different divisions accordingly.
A) functional
B) cooperative
C) competitive
D) SBU

Question

Quizplus · Accepted Answer

In a competitive structure hierarchy, strategic controls are used to set targets, and financial controls are used to monitor performance, allowing the headquarters to allocate resources based on divisional performance.

As Illustrated by Textron Inc