One major advantage of the holding company form of organization structure is that it minimizes the duplication of functional activities between product lines.

Question

Quizplus · Accepted Answer

The holding company structure is a variation of the divisional structure. Whereas the SBU structure is often used when similarities exist between the individual businesses (or divisions), the holding company structure is appropriate when the businesses in a corporation portfolio do not have much in common. The lack of synergy means that this duplication at the functional level exits.

One Major Advantage of the Holding Company Form of Organization