Organizations That Process Natural or Basic Resources as Raw Materials

question 26

Multiple Choice

Organizations that process natural or basic resources as raw materials or other essential inputs to obtain their outputs will locate near their resources if one of the following conditions holds:

• A)High economies of scale exist for the product
• B)The raw material can be shipped long distance before being processed
• C)There is a large loss in size or weight during processing.
• D)Both A and C

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Definitions:

Two Bosses

A situation in a matrix organization where an employee is answerable to two supervisors, each with their own set of expectations and tasks.

Network Structure

A flexible organizational design characterized by interconnected nodes of teams or individuals, facilitating adaptability and information exchange.

Core Competencies

The essential capabilities and strengths that give an organization or individual a competitive advantage.

Divisional Organizational Structure

Is an organizational form in which the company is divided into semi-autonomous units, each focusing on a specific product line or geographic area.