If a Firm's Leaders Are Using a Functional Structure but Feel

question 64

Multiple Choice

If a firm's leaders are using a functional structure but feel it is becoming too complex as the company experiences growth, the leaders can turn to:

• A) a simple structure.
• B) downsizing.
• C) reengineering.
• D) restructuring.
• E) a multidivisional structure.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares of the paying company's stock rather than cash.

Common Stock Account

An equity account that represents the ownership interest held by common shareholders in a corporation, including its value and dividends.

Capital in Excess of Par

The amount by which the proceeds from the issuance of shares exceed the par value of the shares issued; it's often referred to as additional paid-in capital.

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.