Which of the Following Is True of Vertical Differentiation in Organizations

question 23

Multiple Choice

Which of the following is true of vertical differentiation in organizations?

• A)It is greater in flat, wider organizations than in tall, narrow organizations.
• B)It decreases with decrease in the span of control.
• C)It is the degree of differentiation between organizational subunits and is based on employees' specialized knowledge.
• D)It is the difference in authority and responsibility in the organizational hierarchy.

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Definitions:

Acquisition Transaction

An acquisition transaction involves one company purchasing most or all of another company's shares to gain control of that company.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's profits through dividends and/or capital appreciation.

Par Value

A nominal value assigned to share certificates of a company, which has no impact on market value but may affect legal capital.

Consolidated Land

An accounting term referring to land owned by a parent company and its subsidiaries, which is accounted for in the consolidated financial statements.