Which of the Following Is TRUE

question 17

Multiple Choice

Which of the following is TRUE?

• A) Organizations tend to change their structure too frequently, which erodes their competitive advantage.
• B) Large organizations can retain a simple structure as long as they have a differentiation strategy.
• C) Flexibility in structure is more important than stability.
• D) Strategy has a more important influence on structure than structure has on strategy.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

BAT Model

Stands for the Behavioral Adjustment Target model, which is a concept in finance that deals with the adjustments investors make based on behavioral economics principles.

Weekly Cash Flows

The movement of cash in and out of a business on a weekly basis, indicating its operational liquidity position.

Annual Interest Rate

The percentage increase in money stored in a financial institution or invested, calculated on an annual basis.