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Which of the following is true of an M-form?Multiple choice question.Each division operates independently.There is fluid movement between divisions.All levels of the firm are highly integrated.There is a flat organizational hierarchy.

Question

Which of the following is true of an M-form?Multiple choice question.Each division operates independently.There is fluid movement between divisions.All levels of the firm are highly integrated.There is a flat organizational hierarchy.

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Solution

The correct answer is "Each division operates independently."

M-form, or Multidivisional form, is a type of organizational structure where the company is separated into several semi-autonomous units which are guided and controlled by (typically lean) corporate headquarters. Each of these divisions operates independently and is responsible for its own profit or loss. This structure allows for a high degree of specialization in various markets or product lines, but it does not typically involve a flat hierarchy, fluid movement between divisions, or high integration across all levels of the firm.

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