Some Degree of Vertical Hierarchy Is Often Needed to Provide

question 96

Essay

Some degree of vertical hierarchy is often needed to provide a framework in which to accomplish tasks. However, an organization's vertical structure needs to be balanced with horizontal mechanisms. In an essay, describe how a manager decides whether to design a structure that emphasizes the formal vertical or the adaptive horizontal structure.

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Definitions:

Cost of Goods Sold

Expenses directly linked to the creation of a company's sold products.

Sales

Sales refer to the transactions where goods or services are exchanged for money, representing the primary source of revenue for most businesses.

Receivables Period

The average time a business spends waiting for its customers to settle their dues.

Credit Sales

Sales for which payment is not received immediately, but the buyer is extended credit to pay at a later date, affecting a company's cash flow and revenue recognition.