When a firm diversifies into different product lines and geographies, a ________ structure is preferred.
A) simple
B) functional
C) multidivisional
D) network

Question

Quizplus · Accepted Answer

Over time, as a firm diversifies into different product lines and geographies, it implements a multidivisional or a matrix structure. The multidivisional structure (or M-form) consists of several distinct strategic business units (SBUs), each with its own profit-and-loss (P&L) responsibility.

When a Firm Diversifies into Different Product Lines and Geographies