Organic Structures

question 63

Multiple Choice

Organic structures

• A)are related to lower job satisfaction.
• B)have formal communication channels.
• C)maximize efficiency and minimize costs.
• D)are conducive to entrepreneurial activity and general innovativeness.

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Definitions:

Break-even Point

The point at which total costs and total revenues are equal, meaning the business is neither making a profit nor suffering a loss.

Variable Expenses

Costs that change in proportion to the level of activity or volume of production in a business.

Sales

The total revenue generated from goods or services sold by a company during a specific period.

Contribution Margin Ratio

The ratio of contribution margin to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and generate profit.