An Organizational Structure Composed of Separate Business Units Within Which

question 32

Multiple Choice

An organizational structure composed of separate business units within which are the functions that together produce a specific product for a specific customer is known as a:

• A)Matrix structure
• B)Geographic structure
• C)Divisional structure
• D)Functional structure
• E)Team structure

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Definitions:

Effective Annual Rate

The yield on a loan or investment taking into account the impact of compounding throughout a year.

Compounded

In finance, referring to the process where interest is calculated on the initial principal and also on the accumulated interest from previous periods.

Stated Interest

The annual interest rate declared on a financial instrument, such as a loan or bond, not accounting for compounding or fees.

Pure Discount Loan

A loan where the borrower receives an amount less than the principal value and repays the principal amount at maturity with no additional interest.