The Rudolph Company is a huge manufacturer of vehicles of three types:

QUESTION

The Rudolph Company is a huge manufacturer of vehicles of three types: emergency vehicles, farm vehicles, and construction vehicles.

The CEO of the Rudolph Company has three people reporting to him: the president of the emergency vehicles division, the president of the farm vehicles division, and the president of the construction vehicles division. The Rudolph Company is set up under what kind of divisional structure?
A) process divisions: grouping by work specialization
B) customer divisions: grouping by common customers or customer groups
C) geographic divisions: grouping by regional sites or areas
D) industry divisions: the conglomerate structure
E) product divisions: grouping by similar products or services

ANSWER

Answer: E
Explanation: E) Product divisions group activities around similar products or services.