Which of the Following Statements Is True Regarding Organizational Design

question 29

Multiple Choice

Which of the following statements is true regarding organizational design?

• A) An organizational design once formed remains constant throughout the life of the organization.
• B) Every organization must identify the single perfect design that fits its needs and then implement it.
• C) Once an organizational design is in place, it hinders the process of organizational change.
• D) Organizational design deals with structure and culture of the organization.

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Definitions:

Temporary Differences

Temporary differences are differences between the carrying amount of an asset or liability in the balance sheet and its tax base, leading to deferred tax assets or liabilities.

Taxable Income

Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Pretax Financial Income

Income of a company calculated before taxes are deducted, often compared to taxable income for tax planning.

Deferred Tax Asset

A tax benefit that arises from temporary differences between the tax and accounting treatment of assets and liabilities, to be utilized in future periods.