Amanda's company employs which approach to departmentalization based on geographic boundaries?

Study for the Penn Foster Principles of Management (BUS 110) Test. Review core concepts with flashcards and multiple-choice questions, each offering hints and explanations. Prepare effectively for your exam!

The correct answer is geographic because this approach to departmentalization organizes a company’s activities based on the geographical locations where they operate. By using geographic departmentalization, Amanda’s company can tailor its operations, marketing, and services to meet the specific needs of different regions or markets. This allows for a better response to local conditions, preferences, and regulations, leading to increased efficiency and customer satisfaction.

Functional departmentalization focuses on grouping employees and tasks based on functions or roles, such as marketing or finance, which does not take into account the location aspect. Product departmentalization organizes activities around specific products or product lines rather than geography. Process departmentalization emphasizes the workflow or processes involved in production or service delivery, which again does not align with the geographical boundary focus. Thus, geographic departmentalization is the most suitable term for Amanda's company's approach.

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