Theresa Works in an Organization Where Small, Self-Contained Units Are

question 6

Multiple Choice

Theresa works in an organization where small, self-contained units are created that focus on a single product line. Coordination within each unit is exceptionally great; however, coordination across the units is poor. These characteristics are consistent with which of the following structures?

• A) Matrix
• B) Functional
• C) Divisional
• D) Team-based
• E) Virtual network

---

Definitions:

Operating Lease

A contract that allows the use of an asset but does not convey rights of ownership, typically used for short-term leasing arrangements.

Capital Lease

A lease classified as a financial transaction where the lessee gains substantial control over an asset, treated like an asset purchase.

Bond Indenture

A legal document specifying the terms and conditions under which a bond is issued, including the interest rate, maturity date, and other covenants.

Stated Interest Rate

The annual interest rate declared on a financial instrument, such as a loan or bond, not taking into account compounding or fees.