Which of the Following Statements Best Describes the Evolution of Organization

question 324

Multiple Choice

Which of the following statements best describes the evolution of organization design?

• A) Companies have evolved to cross-functional teams because line models and line-and-staff models have become too costly to maintain.
• B) Most companies are finding that the stages of product development are much slower than in the past because new products are much more complicated than products of several years ago. Matrix models work much better in the current environment.
• C) The development of new technology allows for companies to be much more self-contained and able to maintain their competitive advantage due to more privacy.
• D) Companies are now part of a vast network of global businesses, and part of a larger system.

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Definitions:

Reverse Split

A reverse split is a stock market maneuver in which a company reduces the number of its existing shares to increase the share price without changing the company's market capitalization.

Information Content Effect

The impact of news or information release on the price and trading volume of securities.

Stock Split

A corporate decision to fragment its current shares into additional shares to raise the market fluidity of the shares.

Clientele Effect

A theory suggesting that the types of investors attracted to a company depend on the company's dividend policy and related tax treatments.