According to the Historically Important Work of Alfred D

question 12

Multiple Choice

According to the historically important work of Alfred D. Chandler, when choosing an organization structure, managers should first

• A) study what the competition is doing.
• B) be aware of the strategy.
• C) draw a hundred boxes to choose from.
• D) look for the least expensive structure.

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Definitions:

Sunk Cost

A cost that is not affected by subsequent decisions.

Manufacturing Productivity

measures the efficiency of the production process, typically quantified as the ratio of outputs produced to inputs used in the manufacturing process.

Internal Rate of Return

This is a financial metric used to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Net Cash Flows

The difference between a company's cash inflows and outflows over a specified period.