A Multidivisional Structure Can Be Costly Because, When a Company

Multiple Choice

A multidivisional structure can be costly because, when a company has seven divisions like GE that each require special skills and knowledge, it can reduce a company's profit margin. In GE's case, departments devoted to important aspects of public relations, business development, legal, global research, human resources, and finance are maintained centrally to provide services to all seven divisions. This creates ________ and saves money.

A) opportunities
B) accessibility
C) consistency
D) sustainability
E) efficiency