Jeff and Matthew, Father and Son, Opened a Large Boutique

question 104

Multiple Choice

Jeff and Matthew, father and son, opened a large boutique named Modus in Chicago. Being the owners of the business, they decide all of the important matters. All the rest of the decisions like product, finance, marketing, and personnel are carried out by the department heads, who have to act according to Jeff's and Matthew's instructions and orders. Which of the following is True about Modus?

• A) The degree of formalization is very low in the organization.
• B) It has a centralized system of decision making.
• C) It has a very tall organizational structure.
• D) It has a matrix organizational structure.
• E) It has a narrow span of control.

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Definitions:

Equal Employment Opportunity

Legislation that ensures that all individuals have an equal chance for employment, without discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information.

Most Favoured Nation Status

A trading advantage granted by one country to another that ensures the receiving country will not be treated less advantageously than any other country with similar agreements.

International Political Kickbacks

Illicit payments made to government officials by businesses or other entities as a way to secure favorable decisions or treatment on an international scale.

Ecological Fallacy

The error of assuming that information about group characteristics can be used to make inferences about individuals within that group.