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The CEO of SemChem Co

question 18

Essay

The CEO of SemChem Co.was considering how to reorganize the company following the management team's decision to create four new product divisions,while maintaining SemChem's existing three regional divisions.A consultant has recommended a solution that centers on driving the change by restructuring the organization around a matrix.Briefly describe the matrix structure and discuss some practical difficulties associated with this organizational structure?


Definitions:

Issue Price

The price at which securities, such as bonds or shares, are originally sold to the public or investors by the issuing entity.

Installment Note Payable

A debt instrument that requires a series of periodic payments to the lender over a specified period of time.

Interest Expense

The expenditure an entity incurs from borrowing funds during a certain period.

Notes Payable

Written agreements in which one party promises to pay another party a definite sum of money either on demand or at a specified future date.

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