One of the Reasons So Many Internet Companies Fail Is

question 179

Multiple Choice

One of the reasons so many Internet companies fail is due to a lack of standardized operating procedures.The companies' managements are afraid of stifling their creative employees by using a rigid structure with lots of rules and regulations.Instead employees are given few rules and allowed to use their own judgment when making decisions.What type of organization design would you find in most of these companies?

• A) Mechanistic
• B) Autocratic
• C) Bureaucratic
• D) Organic
• E) Formalized

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Definitions:

Net Operating Income

The profit generated from a company's everyday operations, excluding income from investments and extraordinary items.

Operating Assets

Assets used by a business in its operational activities to generate revenue, excluding investment and non-operational assets.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate revenue, such as machinery, buildings, and equipment.

Minimum Required Rate

The lowest return on investment that an investor is willing to accept, often influenced by the risk-free rate and the investor's risk tolerance.