Which of the Following Is TRUE

question 61

Multiple Choice

Which of the following is TRUE?

• A) Organizations tend to change structure too frequently, which erodes their competitive advantage.
• B) Large organizations can retain a simple structure as long as they have a focus strategy.
• C) Flexibility in structure is more important than stability.
• D) Strategy has a more important influence on structure than structure has on strategy.

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Definitions:

Collecting Receivables

Collecting receivables involves the process or steps taken by a business to ensure that payments are received from customers for goods or services provided on credit.

Cash Cycle

The period of time between a company's purchase of inventory and the receipt of cash from accounts receivable.

Operating Cycle

The duration of time from the purchase of inventory to the collection of cash from sales, reflecting the efficiency of a company's operations.

Cash Flow Time Line

Graphical representation of the operating cycle and the cash cycle.