Which of the Following Statements About Matrix Organizations Is False

question 146

Multiple Choice

Which of the following statements about matrix organizations is false?

• A) In a matrix organization, conflict between functional and product managers may arise.
• B) In a matrix organization, staff under dual command is more likely to suffer stress at work.
• C) Matrix organizations offer the advantage of greater flexibility.
• D) Matrix organizations minimize costs and simplify communication.

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Definitions:

Forecasted Net Income

An estimate of a company's future net earnings over a specific period, considering expected income and expenses.

Capital Budget

The process of planning and managing a company's long-term investments in major projects and fixed assets.

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of ownership remains the same.

Total Market Value

The aggregate valuation of a company or asset in the marketplace, calculated by multiplying the current market price of its shares by the total number of shares outstanding.