Which of the Following Best Describes Organizations Going Through the Organizational

question 60

Multiple Choice

Which of the following best describes organizations going through the organizational life cycle?

• A) They usually reach elaboration in 12-18 months.
• B) They tend to become very bureaucratic by the collectivity stage.
• C) They usually resolve crises associated with each stage, or face restricted growth.
• D) They tend to experience their wildest and most rapid growth period in the formalization stage.

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Definitions:

Financial Structure

The mix of a company's liabilities and shareholders' equity used to finance its assets, including short-term and long-term debt, as well as equity capital.

Operating Cash Flows

Cash generated from a company's normal business operations, reflecting how well it can generate cash to pay debts and fund its operating expenses.

Blue-Chip Companies

Businesses recognized for their financial stability, reliability, ability to generate steady profit, and having a long history of paying dividends.

Emerging Companies

Businesses in the early stages of development that have high growth potential but also face higher risks and uncertainties.