Does It Make Sense for a Firm to Revert to a Functional

question 81

Multiple Choice

Does it make sense for a firm to revert to a functional structure?

• A)Maybe. It depends whether such a change is appropriate in the prevailing circumstances
• B)Yes. The traditional functional structure has stood the test of time.
• C)No. It's a retrograde step.
• D)Yes, if part of a retrenchment strategy.

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Definitions:

Good Faith Purchaser

An individual who buys property without knowledge of any existing claims or defects against the title of the property.

Insolvent

Insolvent describes a state where an individual or organization cannot meet its financial obligations or pay its debts as they become due.

Negotiable Document

A legal document guaranteeing the payment of a specific amount of money, either on demand or at a set time, which can be transferred from one holder to another.

Insolvent

The state of being unable to pay debts as they come due, or having liabilities that exceed the value of assets.