A Firm That Is Earning a Positive Profit in the Short

question 19

True/False

A firm that is earning a positive profit in the short run and expects to continue doing so has an incentive to expand its scale of operation in the long run.

Grasp the significance of establishing organizational legitimacy and the methods to achieve it.

Identify strategies to reduce environmental uncertainty and manage resource dependence.

Comprehend the role of strategic alliances and joint ventures in organizational strategy.

Understand the impact of vertical integration on risk management.

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Definitions:

Team-Based Structure

An organizational architecture that emphasizes collaborative work and projects carried out by teams, as opposed to hierarchy or individual efforts.

Simple Structure

An organizational design with low departmentalization, wide spans of control, centralized authority, and minimal formalization.

Formal Hierarchy

A structured organization where individuals are ranked according to their levels of authority and responsibility.

Organizational Chart

A diagram that displays the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.