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Category - Management

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Which of the following is an advantage of the holding company corporate structure?
  1. It reduces overhead and personnel costs because the corporate office is small.
  2. Executives have a great deal of control over daily operations.
  3. Executives are aware of decisions made at every level of the company.
  4. Integration between divisions increases efficiency and reduces costs.
Explanation
Answer: A - The holding company structure reduces overhead and personnel costs by having a small corporate office. This structure is only appropriate when decentralized decision making is desirable, such as when one management company owns several companies in disparate industries
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