Which of the Following Statements About "Flat" Organizations Is Least

question 24

Multiple Choice

Which of the following statements about "flat" organizations is least true?

• A)Flat organizations emphasize long-term compensation rather than current pay from salary or bonus
• B)The "prize" associated with promotion appears to be greater at flat organizations compared to tall ones
• C)In a flat organization,there are fewer direct reports to a group head than in a taller firm
• D)Delegating more decision making as in a flat organization might be attractive when the competitive environment is hostile
• E)Flat organizations tend to have more divisions than their taller firm counterparts

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Definitions:

Effective Interest Rate

The actual rate of interest earned or paid on an investment or loan over a given period, accounting for the effect of compounding.

Bond Discount Amortized

The process of gradually writing off the discount on bonds payable over the life of the bonds, affecting interest expense on the income statement.

Bond Premium Amortization

The process of gradually expensing the premium paid over the par value of a bond over its life.