Which of the Following Is TRUE

question 61

Multiple Choice

Which of the following is TRUE?

• A) Organizations tend to change structure too frequently, which erodes their competitive advantage.
• B) Large organizations can retain a simple structure as long as they have a focus strategy.
• C) Flexibility in structure is more important than stability.
• D) Strategy has a more important influence on structure than structure has on strategy.

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Definitions:

Quality of Income

A measure of how easily accounting income can be converted to cash, indicating the reliability of earnings.

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Return on Equity Ratio

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company uses investments to generate earnings growth.