(b) Corporate Level and Operating Divisions. For purposes of this chapter, we may
at times refer to the parent or holding company as the “corporate” level. The sub-
sidiaries or affiliates are usually grouped together under operating divisions for del-
egated guidance and control. Broadly speaking, operating divisions may be geo-
graphically oriented (Exhibit 25.1) or functionally organized (Exhibit 25.2).
Frequently, there is an additional management layer, a “region” between the operat-
ing division and a number of affiliates. Of course, there are numerous other possibil-
25 • 4 MULTINATIONAL BUDGETING AND CONTROL SYSTEMSExhibit 25.1. Corporate Organization.
Exhibit 25.2. Corporate Organization.