Which of the Following Is a Disadvantage of a Multidivisional

Multiple Choice

Which of the following is a disadvantage of a multidivisional structure?

A) A multidivisional structure decreases division of labor which ultimately decreases organizational effectiveness.
B) It becomes difficult for corporate headquarters to identify the divisions in which an investment of capital will yield the highest returns.
C) A multidivisional structure is not suitable for an organization which produces a wide range of complex products.
D) Multidivisional structures are very expensive to operate.