Strict Matrix Structures, with Equal Emphasis on Different Organizational Dimensions

question 71

Multiple Choice

Strict matrix structures, with equal emphasis on different organizational dimensions:

• A)Are leading to increased complexity.
• B)Put extra emphasis on the geography and product dimensions
• C)Are rarely efficient and have been abandoned by most of the firms who originally espoused them.
• D)Lead to less political in-fighting than the Functional and Divisional structures

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Definitions:

Cost of Capital

A minimum profit rate a business has to achieve on its ventures to sustain its market price and appeal to investors.

MIRR

Modified Internal Rate of Return, a financial measure used to evaluate the profitability of investments, adjusting for differences in cash flow timing and reinvestment rates.

Cost of Capital

The rate of return that a company needs to earn on its investment projects to maintain its market value and satisfy its investors and creditors.

Internal Rate of Return

The discount rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.