Which of the Following Statements Is Most Likely to Be

question 75

Multiple Choice

Which of the following statements is most likely to be true regarding a tall organization?

• A) A tall organization has few levels in its hierarchy relative to its size.
• B) Generally organizations with less than 1000 employees have tall structures.
• C) A tall organization has more managers to direct and control employees' activities than does a flat organization with the same number of employees.
• D) The taller an organization, the more decentralized are its operations.

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Definitions:

Common Stockholders

These are investors who own shares of a company's common stock, granting them voting rights and a portion of the company's profits through dividends.

Hybrid Security

A financial instrument that combines characteristics of both equity and debt securities, offering a blend of risk and return features.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock.

Bonds

Fixed-income securities representing a loan made by an investor to a borrower, typically corporate or governmental.