Selecting the Organizational Structure and Controls That Effectively Implement the Chosen

question 124

Multiple Choice

Selecting the organizational structure and controls that effectively implement the chosen strategy is a challenge for managers because:

• A) firms must be flexible while retaining a degree of stability.
• B) managers are never able to obtain all the information necessary to make the best selection.
• C) the structure of a firm should not duplicate the structures of its competitors.
• D) the environment changes too rapidly for corporations to maintain a consistent corporate structure.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with dividends that are paid out before those to shareholders of common stock.

Common Stock

Common stock is a type of equity ownership in a corporation, representing a claim on part of the company's profits and conferring voting rights.

No Par Common Stock

is common stock that has been issued without a par value, meaning its value is not fixed in the company’s charter but is determined by the market.

Cash Price

The amount of money that a buyer must pay to purchase a good or service immediately without financing.