Which of the Following Is a Key Difference Between a Formal

question 68

Multiple Choice

Which of the following is a key difference between a formal group and an informal group?

• A) A formal group is the only formed for task functions, whereas informal groups are only formed for relational functions.
• B) A formal group is only formed at department level or higher, whereas informal groups can occur at any level in an organisation.
• C) A formal group is constructed by management whereas an informal group has not been formally established within the organisation
• D) There are no key differences between formal and informal groups within organisations

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Definitions:

Marginal Cost

The augmentation in cost due to the manufacture of one additional unit of a product or service.

Total Variable Cost

The sum of all costs that vary with the level of output, including materials and labor directly involved in production.

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.

Total Cost

The combined amount of all expenses and costs associated with the production and sale of a good or service.