John and Alex Both Work for Large Organisations

question 61

Multiple Choice

John and Alex both work for large organisations.John's organisation has extensive work specialisation and everything is fairly formal.All decisions are made at the top of the hierarchy.Alex,on the other hand,works for an organisation that is low in formalisation and composed of numerous cross-functional teams.Employees in this organisation frequently get to make their own decisions. Alex is likely working for:

• A)an organic organisation.
• B)a mechanistic organisation.
• C)a matrix organisation.
• D)a virtual organisation.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation and a claim on part of the company’s profits.

Retained Earnings

Accumulated net income of a company that has not been distributed to shareholders as dividends.

Paid-In Capital

Paid-in capital is the amount of money that a company has received from shareholders in exchange for shares of stock.

Issuing Stock

The process by which a company raises capital by distributing shares of its ownership to investors.