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:

Partner

An individual or entity involved in a business enterprise with one or more other partners, sharing in the profits and losses of the business.

Agency Parties

Individuals or entities that enter into an agency relationship where one party (the agent) agrees to act on behalf of another party (the principal).

Beneficiary

An individual or entity entitled to receive benefits or proceeds from an insurance policy, trust, or will.

Third Party

An individual or group besides the two involved in a transaction or legal case.