Which of the Following Statements About the Informal Organization Is

question 133

Multiple Choice

Which of the following statements about the informal organization is true?

• A)Informal organizations provide a source of friendship for organization members.
• B)Informal organizations can provide status and recognition that the formal organization cannot provide its employees.
• C)The informal organization learns information about the formal organization through the grapevine.
• D)The informal organization can create problems for the formal organization if it is not managed well.
• E)All of the above statements about the informal organization are true.

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Definitions:

Break-even Point

The financial stage at which total revenues equal total expenses, indicating that a business is neither making a profit nor incurring a loss.

Variable Expenses

Costs that change in proportion to the level of activity or volume of production.

Sales

The transactions involving the exchange of goods or services for payment.

Net Operating Income

A measure of profitability that calculates the difference between a company's operating revenue and its operating expenses, excluding taxes and interest.