Pipeline Designs Inc

question 39

Multiple Choice

Pipeline Designs Inc.is a firm that outsources designs for apparels and accessories to reputed fashion houses across Europe.Of late,it has been losing out on orders from important clients.A study conducted on the firm reflected that though the designers were highly capable,low levels of employee empowerment,motivation,and experimentation stifled their creativity.To tackle this problem the firm should:

• A) adopt a mechanistic structure.
• B) adopt high degrees of formalization and standardization.
• C) adopt an organic structure.
• D) avoid keeping its R&D activities decentralized.

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Definitions:

Separate Legal Entity

A separate legal entity is a business structure that is legally considered distinct from its owners, providing them with certain protections and liabilities.

Proprietorship

A business owned by one person.

Partnership

A business owned by two or more persons associated as partners.

Return on Equity

Return on Equity (ROE) measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested.