If Marcus Organizes with a Horizontal Matrix Structure, Some Potential

question 70

Multiple Choice

If Marcus organizes with a horizontal matrix structure, some potential advantages that he could anticipate include all of the following, EXCEPT:

• A) a more efficient use of resources.
• B) greater flexibility and adaptability to a changing environment.
• C) development of both general and specialist management skills.
• D) decreased need for coordination among managers.
• E) all of these are potential advantages.

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Definitions:

Fixed Expenses

Expenses that do not change in total over a short period of time, regardless of the level of outputs or activity levels.

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after accounting for the direct costs and expenses attributable to that segment.

Traceable Fixed Expenses

Costs that are consistently the same in total but can be directly linked to a specific department, project, or product.

Net Operating Income

A profitability measure that calculates a company's income after operating expenses are subtracted but before deducting interest and taxes.