A Basic Problem of the Matrix Structure Is _____

question 7

Multiple Choice

A basic problem of the matrix structure is _____.

• A) it does not promote economies of scale.
• B) it cannot help the organization to acquire the latest and most scale-intensive machinery.
• C) it is difficult to determine the responsibility and authority relationships between the functional and divisional managers.
• D) it does not ensure that organizations will engage in socially responsible efforts.
• E) it does not encourage collaboration, efficiency, and quality within the function.

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Definitions:

Convertible Securities

Financial instruments, such as bonds or preferred shares, that can be converted into a specified amount of another asset, typically common stock, at a predetermined price or timing.

Fair Value

The price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Treasury Stock

Shares that were once part of the float and outstanding shares but were subsequently purchased back by the issuing company, reducing the amount of outstanding stock on the open market.

If-converted Method

An accounting method used to calculate earnings per share, assuming all convertible securities were transformed into common stock.