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Decisions Made About the Structure of an Organization Are Generally

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Decisions made about the structure of an organization are generally referred to as operational planning decisions.


Definitions:

Fixed Assets

Fixed assets are long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash in the near term.

Sales Growth Rate

The percentage increase in sales over a specific period, indicating the health and expanding nature of a business.

Capacity

The maximum amount that something can contain or produce, often used in the context of production and manufacturing.

Lumpy Assets

Those assets that cannot be acquired smoothly, and that require large, discrete additions. For example, an electric utility that is operating at full capacity cannot add a small amount of generating capacity, at least not economically.

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