In Which of the Following Circumstances Will a Functional Structure

question 54

Multiple Choice

In which of the following circumstances will a functional structure be more appropriate for an organization?

• A)When the environment is unstable
• B)When demand for the resources can be well anticipated
• C)When the organization competes on differentiation
• D)When coordination requirements keep changing
• E)When innovation is the primary focus of the organization

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Definitions:

Bad Debt Expense

A ledger showing the value of invoices that a business anticipates it will not be able to receive payment for.

Aging of Receivables

A method for managing accounts receivable by categorizing debts by their due ages to estimate the timing of collections.

Allowance for Doubtful Accounts

An estimation of the accounts receivable that a company does not expect to collect, serving as a contra account to accounts receivable.

Bad Debt Expense

The cost associated with accounts receivable that a company is not able to collect.