Product Management Organisations

question 10

Multiple Choice

Product management organisations:

• A)rely primarily on hierarchical mechanisms for resolving conflicts across functional areas
• B)are characterised by decentralised decision-making while increasing the amount of product specialisation within the SBU
• C)are the most specialised type of organisation
• D)are the most common organisational form among entrepreneurial start-ups,including many dot-com companies

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Definitions:

Profit Maximizers

Refers to firms or individuals who alter their production or operational levels to achieve the highest possible profit margins.

Lump Sum Subsidy

A fixed amount of money provided by the government or a body to support a business or market, which does not change with the level of output.

Per-Unit Subsidy

A financial incentive given by the government, reducing the cost of each unit of a good or service to either the producer or consumer.

Profit Maximization

A business objective to achieve the highest possible profit from operations, often by adjusting production, prices, and other variables.