The Relationship Between Size and Structure Is Such That Larger

question 101

Multiple Choice

The relationship between size and structure is such that larger organizations tend to be more ________.

• A)mechanistic
• B)organic
• C)flexible
• D)decentralized

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Definitions:

Total Cost

The complete cost of production that includes both fixed and variable costs.

Breakeven

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Revenue

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed to variable costs in a company's cost structure.