An Area Structure Is One Where an Organization

question 32

Multiple Choice

An area structure is one where an organization:

• A) groups people together because they hold similar positions in a company,perform a similar set of tasks,or use the same kind of skills.
• B) groups products into separate divisions according to their similarities or differences.
• C) groups products into separate divisions according to the needs of the different geographical regions the company serves.
• D) groups products into separate divisions according to the needs of different customers.
• E) is said to be organized by more than one dimension at the top level.

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its sales and earnings without increasing leverage or debt financing.

Leverage Ratios

Financial metrics that assess the level of debt in a company's capital structure relative to its equity or assets.

Dividend Policy

A company's approach to distributing profits back to its shareholders, whether through cash dividends, stock dividends, or share repurchase plans.

Sales Forecasts

Sales Forecasts predict the amount of product or service a company expects to sell over a specific period, aiding in planning and budgeting.