A Team Is Least Likely to Be a Useful Form

question 19

Multiple Choice

A team is least likely to be a useful form of organization under which one of the following conditions?

• A) speed is important
• B) the organization faces a complex and rapidly changing environment
• C) work processes are best handled by one functional group
• D) when innovation and learning have high priority

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets and liabilities.

Shareholders' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership interest of shareholders.

Gross Margin

The difference between revenue and the cost of goods sold, divided by revenue, expressed as a percentage. It shows the percentage of revenue that exceeds the cost of goods sold.

Consolidated Inventory

involves aggregating the inventories of a parent company and its subsidiaries, presenting them as a single inventory balance in the consolidated financial statements.