Oliver Williamson said two main corporate governance advantages of the multidivisional structure ("M-form")for large,diversified companies were:

Question

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The multidivisional structure (M-form) allows for the creation of a competitive internal capital market in which capital allocation is not influenced by political considerations. Additionally, it creates a corporate headquarters that can represent shareholder interests. Thus, the correct answer is C. Option A is incorrect because it talks about centralizing high-frequency decision making, which is not a benefit of the M-form. Option B is incorrect because it talks about centralizing strategic decision making, which is not necessarily a feature of the M-form. Option D is also incorrect because it suggests that divisional managers are dependent on the capital allocation at the corporate level, which is not a benefit of the M-form.

Oliver Williamson Said Two Main Corporate Governance Advantages of the Multidivisional