Which of the following is not a key difference between a multidivisional company and a holding company?
A)Multidivisional companies have a centralized treasury;holding companies do not
B)The parent of a holding company appoints the boards of directors of its subsidiaries;the HQ of a multidivisional company directly appoints divisional managers
C)The subsidiaries of a holding company are responsible for their own financing decisions;the divisions of a multidivisional company need only to consider their credit ratings
D)Multidivisional corporations typically have a single,integrated strategic planning process;holding companies do not.

Question

Quizplus · Accepted Answer

The key difference not accurately described is that in both holding companies and multidivisional companies, the financing decisions can vary significantly. While it's true that subsidiaries of a holding company often handle their own financing, the statement about divisions of a multidivisional company only needing to consider their credit ratings simplifies the complexity of internal financing decisions, which can involve allocations of capital from the central treasury based on various strategic and operational considerations, not just credit ratings.

Which of the Following Is Not a Key Difference Between