Matrix Structures

question 39

Multiple Choice

Matrix structures

• A) are generally used by small organizations in which the manager, president, and owner are all the same person.
• B) place the functions required to serve a business under a manager who is in charge of a specific location.
• C) organize their businesses around serving customers that all act in a similar way.
• D) group business units around different products that the company produces.
• E) try to take advantage of two types of structures at the same time.

---

Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than one indicates greater volatility.

Required Rate of Return

The minimum annual percentage return an investor expects to achieve from an investment, considering its risk.

Market Risk Premium

The additional return investors expect to receive from an equity investment over the risk-free rate, compensating for taking on higher risk.

Negative Beta

A measure indicating the inverse relationship between the return of a stock and the return of the overall market.