The Features of the U-Form of Firm Organization Are

question 2

Multiple Choice

The features of the U-Form of firm organization are

• A)workers have trouble developing a high degree of functional expertise
• B)it is difficult for employees to share information across positions within a division
• C)employee evaluation is simplified by managers having similar skill sets than workers
• D)coordination across divisions is simple and does not take much management time

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Definitions:

Required Return

The minimum expected return by investors for providing capital, based on the risk of the investment.

Operating Assets

Assets used in the daily operations of a business to generate revenue, such as machinery, building, and equipment.

ROI

Return on Investment; a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting in variable cost situations.