Today's Preference for Flat Rather Than Tall Organization Structures Is

question 83

Multiple Choice

Today's preference for flat rather than tall organization structures is mainly due to a flat organization's ability to

• A) encourage esprit de corps among employees in various departments.
• B) increase the cost of labor through economies of scale.
• C) respond quickly to customer demands.
• D) increase sales through multiple customer contacts by several layers of management.

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Definitions:

Net Operating Income

The profit a company generates from its operations, before taxes and interest, calculated as gross income minus operating expenses.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Operating Assets

Assets that are used for the day-to-day operations of a business, including cash, inventory, and property, plant, and equipment.

Minimum Required Rate

The lowest acceptable rate of return on an investment demanded by an investor, considering risk factors.