The Virtual or Network Organization Suggests

question 23

Multiple Choice

The virtual or network organization suggests:

• A) there is no "one best" structure appropriate for every organization; this approach contends the "best" structure for an organization fits its needs for the situation at the time.
• B) administration is the primary function performed; other functions-such as marketing, engineering, production, and finance-are outsourced to other organizations or individuals.
• C) organizing a business according to job or purpose and is most easily recognized by departments that focus on a single function or goal.
• D) combining elements of the functional and the divisional structures, to bring specialists from different areas of a business to work together on different projects on a short-term basis.
• E) basing functions on product, geographic area or territory, or customer.

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Definitions:

Initial Endowment

The initial amount of resources, wealth, or goods that an individual or entity possesses at the start of a period.

Strictly Convex Preferences

Preferences that imply a consumer always prefers a mixture or combination of two goods over having just one of them, indicating a strong preference for variety.

Marginal Rates of Substitution

The rate at which a consumer is willing to substitute one good for another while maintaining the same level of satisfaction, pivotal in understanding consumer choice.

Pareto Optimal

An economic situation where it is impossible to make any one individual better off without making at least one individual worse off.