Which of the Following Best Describes a Simple Structure

question 71

Multiple Choice

Which of the following best describes a simple structure?

• A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources.
• B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
• C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
• D) Employees have two or more superiors, a project manager and a functional manager.
• E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

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Definitions:

Partnership Capital

The total funds contributed by the partners of a partnership firm, which are used in the business and represented on the firm's balance sheet.

Income-sharing Ratio

The predetermined proportion used to distribute earnings or losses among business partners or shareholders according to their agreement.

Fair Value

The amount one would receive from selling an asset or the cost to transfer a liability during a systematic transaction among market participants on the date of valuation.

Partnership Interest

An ownership share or interest in a partnership, representing a partner's stake in the profits, losses, and assets of the business.