Which Element of Organizational Structure Would a Firm Pursuing an Innovation

question 21

Multiple Choice

Which element of organizational structure would a firm pursuing an innovation strategy be most likely to have?

• A) centralization
• B) decentralization
• C) low specialization
• D) high formalization
• E) none of these

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Definitions:

Profit

The financial gain realized when the amount of revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Profit Margin

The amount by which revenue from sales exceeds costs in a business, expressed as a percentage.

Sales-Oriented

A business approach focused primarily on generating sales regardless of customer needs or the longer-term company interests.

Objective

A specific, measurable, attainable, relevant, and time-bound goal that an individual or organization aims to achieve.