Which of the Following Is True About Organization Growth Stages

question 21

Multiple Choice

Which of the following is true about organization growth stages?

• A) The craft or family stage is characterized by the presence of formal policies, objectives, and structure.
• B) During the entrepreneurial stage, the organization grows first at an increasing and then a decreasing rate.
• C) The operations of the organization at the professional management stage generally center on one individual or a very small number of individuals and one functional area.
• D) The entrepreneurial stage is the third stage of growth.
• E) By the end of the third stage of growth, the professional manager evolves into an entrepreneur.

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Definitions:

Complement

A good or service that is used together with another good or service, which increases the demand for each other.

Financing

The process of providing or obtaining the funds necessary for investment, purchase, or undertaking a project.

Normal Good

A good whose demand varies directly with income; nearly all goods are normal goods.

Demand

The measure of goods or services that consumers are inclined and able to procure at assorted prices during an established period.