Williamson thought a multi-divisional company solved two economic problems: :
A)Allocation of resources, and succession problems
B)Allocation of resources, and the agency problem
C)Organizational change, and trade union activities
D)None of the above

Question

Quizplus · Accepted Answer

Williamson believed that the multi-divisional structure addressed the economic problems of allocating resources efficiently and dealing with the agency problem (where managers may act in their own self-interest rather than in the interest of the company's owners). The other options listed are not directly addressed by Williamson's theory.

Williamson Thought a Multi-Divisional Company Solved Two Economic Problems