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Which of the Following Is True About the Differences Between

Question 11

Multiple Choice

Which of the following is true about the differences between M-form and U-form firms?


A) As M-form firms are more diversified, it is more difficult for the management to acquire and compare information about products and locations than a U-form firm.
B) A U-form firm can better incentivize managers than M-form firms.
C) In an M-form firm the interests of executives in product or geographic divisions can be better aligned with those of shareholders compared to a U-form firm.
D) M-form firms usually operate in fewer markets than U-form firms.

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