You Have Learned About the Traditional and New Design Options

question 66

Multiple Choice

You have learned about the traditional and new design options for organizational structures. You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly formed organization.
-You have recently started your business with a small capital investment. Your business needs a very high degree of flexibility so that you can quickly respond to environmental changes and you are also interested in minimizing costs. Which of the following types of organizations is best suitable for your business?

• A) a highly centralized organization
• B) a virtual organization
• C) a formalized organization
• D) a bureaucracy
• E) a hierarchical organization

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Definitions:

Accounting Cycle

The sequence of steps followed in the accounting process to track and report financial transactions, from the initial transaction to the financial statements.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including a balance sheet, income statement, and cash flow statement.

Post-Closing Trial Balance

A list of all accounts and their balances after closing entries are made, serving to verify the equality of debits and credits.

Current Liabilities

Financial liabilities that need to be settled within a year or within the standard operating period of the company.