You Have Learned About the Traditional and New Design Options

question 66

Multiple Choice

You have learned about the traditional and new design options for organizational structures. You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly formed organization.
-You have recently started your business with a small capital investment. Your business needs a very high degree of flexibility so that you can quickly respond to environmental changes and you are also interested in minimizing costs. Which of the following types of organizations is best suitable for your business?

• A) a highly centralized organization
• B) a virtual organization
• C) a formalized organization
• D) a bureaucracy
• E) a hierarchical organization

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Definitions:

Allowance Method

is an accounting technique that estimates and reports the likely amount of uncollectible accounts receivable as an allowance for doubtful accounts.

General Ledger Account

A comprehensive record containing all the financial transactions of a business.

Aging

A method used in accounting to categorize a company's accounts receivables according to the length of time an invoice has been outstanding.