Candoo Ltd

question 133

Multiple Choice

Candoo Ltd. will soon flatten its hierarchy by removing two of the five layers of management. If the number of employees in the organization remains constant, which of the following must also occur?

• A)It must rely more on direct supervision than standardization to coordinate the resulting structure.
• B)It must decentralize decision making and narrow the span of control.
• C)It must widen the span of control.
• D)It must centralize decision making.
• E)It must adopt a matrix form of departmentalization.

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Definitions:

Price

The financial expenditure involved in obtaining a product or service.

Competitive Industry

An industry characterized by many firms, free entry and exit, and a product for which every seller is a price taker.

Perfectly Elastic

A situation in which the quantity demanded or supplied changes infinitely in response to any change in price, represented by a horizontal demand or supply curve.

Input Prices

The cost of resources used in the production process, including labor, materials, and capital.