Selecting the Organizational Structure and Controls That Effectively Implement the Chosen

question 124

Multiple Choice

Selecting the organizational structure and controls that effectively implement the chosen strategy is a challenge for managers because:

• A) firms must be flexible while retaining a degree of stability.
• B) managers are never able to obtain all the information necessary to make the best selection.
• C) the structure of a firm should not duplicate the structures of its competitors.
• D) the environment changes too rapidly for corporations to maintain a consistent corporate structure.

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Definitions:

Treasury Stock

Shares that were issued and then repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Classification

The systematic arrangement of business transactions and accounts in categories or groups based on similar characteristics for financial reporting and analysis.

Distribution

The process of making a product or service available for the consumer or business user that needs it.

Earnings Per Share

A financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s profitability.