In Which Type of Organizational Structure Is Power Centralized and the Type

question 3

Multiple Choice

In which type of organizational structure is power centralized and the type of environment best supported stable and certain?

• A) Flat
• B) Networked
• C) Hierarchical
• D) Matrix
• E) Traditional

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Definitions:

Margin of Safety

The difference between actual or expected sales and sales at the break-even point, indicating the risk margin for not reaching profit.

Dollars

The unit of currency used in the United States and other countries, represented by the symbol $.

Degree of Operating Leverage

The Degree of Operating Leverage is a measure that assesses the sensitivity of a company's operating income to changes in its sales volume, indicating the percentage change in operating income for a percentage change in sales.

Net Operating Income

A measure of a company's profitability from its regular business operations, deducting operating expenses from gross income.