Which of the following is true about the differences between M-form and U-form firms?
A)As M-form firms are more diversified, it is more difficult for the management to acquire and compare information about products and locations than a U-form firm.
B)A U-form firm can better incentivize managers than M-form firms.
C)In an M-form firm the interests of executives in product or geographic divisions can be better aligned with those of shareholders compared to a U-form firm.
D)M-form firms usually operate in fewer markets than U-form firms.

Question

Quizplus · Accepted Answer

In an M-form firm, the interests of executives in product or geographic divisions can be better aligned with those of shareholders compared to a U-form firm. This is because M-form firms work as a team and place more emphasis on product specialization, whereas U-form firms work on a functional specialization model, making it harder for executives to work together. Options A, B, and D are incorrect as they do not accurately reflect the differences between M-form and U-form firms.

Which of the Following Is True About the Differences Between