All of the Following Statements About Simple Organizational Structures Are

question 19

Multiple Choice

All of the following statements about simple organizational structures are , except

• A) small firms with a narrow product-market scope will adopt such a structure.
• B) decision making authority is highly centralized.
• C) there is little specialization of tasks.
• D) creativity and individualism are rare.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Positive Profits

The financial gain that occurs when total revenue exceeds total costs.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to any change in market conditions.

Economic Profit

The difference between total revenues earned from production and the total opportunity costs of all inputs used in production.