Question

RUSLIU 0.5 pts Transfer pricing may lead to divisional battles in a multidivisional company. True False Question 4 0.5 pts Which of the following is an advantage of the multidivisional structure? It prevents the duplication of functional resources, It provides scope for corporate managers to easily allocate skills or resources from one division to another. It eliminates the scope for information distortion. It makes it easier for the corporate office to evaluate divisonal performance

Answer 1

3. True that transfer pricing may lead to division battles in a multidivisional company.

4. It makes it easier for the corporate office to evaluate divisional performance is an advantage of the multidivisional structure. It helps in seeing which divisions have the highest profit, based on which you can see where to invest.