As Indicated in the Spotlight for Small Business Box Titled

question 156

True/False

As indicated in the Spotlight for Small Business box titled, "Keeping that Small- Company Feeling," the giant media company formed by AOL and Time Warner proved that the informal organization is not conducive to creativity and innovation.

Identify the implications of high differentiation and integration on organizational structure and function.

Analyze the role of structure in labour division and coordination within an organization.

Understand the rationale behind dividing labour in organizations.

Identify the implications of vertical and horizontal division of labour.

---

Definitions:

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.

Operating Leverage Factor

A measure indicating how a company's fixed costs relate to its variable costs, impacting profitability as sales levels change.

Contribution Margin

The contribution margin is the amount by which the sales revenue of a product or service exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.

Selling Price

The amount of money customers pay for a product or service.