You Have Learned About the Traditional and New Design Options

question 92

Multiple Choice

You have learned about the traditional and new design options for organizational structures. You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly formed organization.
-You have recently started your business with a small capital investment. Your business needs a very high degree of flexibility so that you can quickly respond to environmental changes and you are also interested in minimizing costs. Which of the following types of organizations is best suitable for your business?

• A) a formalized organization
• B) a highly centralized organization
• C) a hierarchical organization
• D) a bureaucracy
• E) a virtual organization

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Definitions:

Raw Materials Inventory

The value of all the materials that are yet to be used in manufacturing.

Required Production

The quantity of products that a company must manufacture in a specific period to meet customer demand and inventory policies.

Budgeted Production

The planned quantity of products a company intends to produce in a certain period, based on demand forecasts and capacity planning.

Raw Materials Inventory

The total cost of all components or materials a company has in stock that are intended for use in production to create finished goods.