Which of the Following Is Not a Decision That External

question 34

Multiple Choice

Which of the following is not a decision that external users of a company's financial information would make?

• A)whether or not to extend credit to the company
• B)whether or not to hold the company's stock
• C)whether or not the company should add a new product line
• D)whether or not to ask for an increase in employees' benefits during union contract negotiations

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Definitions:

Adhocracy

An organizational structure that is flexible, adaptable, and non-hierarchical, often used to spark innovation and tackle emerging issues.

Decentralization

The distribution of decision-making powers from a central authority to local or individual levels within an organization or system.

Horizontal Specialization

An organizational structure approach that involves dividing work into specialized tasks or roles based on function or expertise at the same hierarchical level.

Organizational Design

Organizational design is the process of choosing and implementing a structural configuration for an organization.