A Mechanistic Organizational Structure Works Better Than an Organic Structure

question 21

Multiple Choice

A mechanistic organizational structure works better than an organic structure when

• A)the organization operates in a dynamic environment.
• B)the organization operates in a hostile environment.
• C)the organization adopts a low-cost strategy.
• D)the organization adopts a differentiation strategy.
• E)the organization requires a high degree of formalization.

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Definitions:

Net Income

The total profit or loss of a company after all revenues, costs, and expenses have been accounted for.

Bad Debt Expense

An estimated expense recognized by businesses for accounts receivable that are considered unlikely to be collected.

Salvage Value

The projected value of an asset when it reaches the end of its operational lifespan.

Useful Life

The estimated time period an asset is expected to be used by a company before it is no longer useful or becomes obsolete.