Which of the Following Best Describes a Simple Structure

question 71

Multiple Choice

Which of the following best describes a simple structure?

• A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources.
• B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
• C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
• D) Employees have two or more superiors, a project manager and a functional manager.
• E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

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Definitions:

Selling Price Per Unit

The amount of money charged to the customer for one unit of a product or service.

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Break-Even Point

The point at which total revenues equal total costs, indicating no profit or loss.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no net loss or gain.