When Departments Are Grouped Together on the Basis of Organizational

question 57

Multiple Choice

When departments are grouped together on the basis of organizational outputs, the organization is using a:

• A) functional structure.
• B) matrix structure.
• C) divisional structure.
• D) virtual network structure.
• E) team-based structure.

---

Definitions:

Selling

Selling involves the exchange of goods or services for money or value, constituting a fundamental activity in business to generate revenue.

Administrative Expenses

Costs related to the general operation and management of a business including office supplies, salaries of non-sales personnel, and rental fees.

Installment Sales

A method of recognizing revenue from sales that are paid for over time through multiple payments.

Initial Franchise Fee

A one-time charge that a new franchisee pays to the franchiser for the rights to operate a franchise, covering initial training, support, and access to the business model.