L&W Ltd Is a Company Headquartered in London That Manufactures Sports

question 86

Multiple Choice

L&W Ltd. is a company headquartered in London that manufactures sports shoes. The firm operates across different countries. In Libya, the decisions regarding the products and services of the firm's production unit such as the prices, promotional methods, etc. are constantly controlled by the government. This implies that the firm is encountering a(n) :

• A) cultural risk.
• B) default risk.
• C) legal risk.
• D) political risk.
• E) lifetime risk.

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Definitions:

Structural Characteristic

Fundamental qualities or traits that define the nature, behavior, or layout of a system, organization, or structure.

Formalization

The extent to which work roles are highly defined by an organization.

Smaller Organizations

are entities characterized by fewer employees and resources, often more flexible and adaptable than larger counterparts.

Centralized

An organizational structure where decision-making authority is concentrated at the top levels of management.