Which of the Following Is True of Trends in Organizational

question 23

Multiple Choice

Which of the following is true of trends in organizational designs?

• A) The growth of new technologies for information systems and social media is reducing new possibilities for creativity.
• B) Managers are trying to minimize the rate of delegation of work as it incurs heavy expenditures.
• C) Delegation and horizontal structures are contributing to more centralization in organizations.
• D) The complexity and uncertainty are prompting more organizations to shift toward organic designs.
• E) Organizations are lowering costs and increasing efficiency by employing more staff personnel and using larger staff units.

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Definitions:

Interest Tax Shield

The decrease in income tax liabilities due to permitted interest expense deductions.

Levered Firm

A corporation that has debt in its capital structure, indicating it uses borrowing (leverage) to finance its operations or expansions.

M&M Proposition I

A principle of financial theory stating that under perfect market conditions, the value of a firm is unaffected by how it is financed.

Liquidation

The process of converting assets into cash or cash equivalents by selling them in the market.