According to Chandler, the Critical Transformations That Led to Modern

question 65

Multiple Choice

According to Chandler, the critical transformations that led to modern corporations are:

• A)The development of a line-and-staff structure, and the extension of activities to a broader geographical area
• B)The extension of activities to a broader geographical area, and growth through acquisitions
• C)The development of a line-and-staff structure, and the emergence of functional and later, divisional structures.
• D)The development of divisions and decentralization of power to the lower levels of the organization

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Definitions:

Dollar Sales

A metric that represents the total monetary value of all sales transactions within a specific period, often used in retail and sales analysis.

Target Profit

The desired level of profit that a business plans to achieve within a specific period.

Contribution Format

A format for income statements where all variable expenses are subtracted from sales to calculate contribution margin, which then has fixed expenses subtracted to determine net operating income.

Income Statement

A financial report that shows a company's financial performance over a specific period, including revenues, expenses, and profit or loss.