In a multidivisional structure, corporate managers can compare the performance of one division against another in terms of its cost structure or the profit it generates.

Question

Quizplus · Accepted Answer

In a multidivisional structure, corporate managers have the ability to analyze and compare the financial performance of different divisions. This includes comparing costs and profits in order to make strategic decisions and allocate resources more effectively. Therefore, the statement is true.

In a Multidivisional Structure, Corporate Managers Can Compare the Performance