Which of the Following Statements Is TRUE

question 65

Multiple Choice

Which of the following statements is TRUE?

• A) The Southwest Airlines culture encourages employees to have cross-departmental collaboration, which results in reduced turnaround time.
• B) Zappos has a tall hierarchical structure that promotes centralized decision making.
• C) McDonald's used organic structure to promote decentralized decision making to solve real-time problems.
• D) Most of the small and less complex organizations use a functional structure.

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Definitions:

Safety Margin

The difference between the actual level of sales or production and the break-even point, measuring the cushion a company has before it incurs losses.

Break Even Point

The financial analysis term where total revenues equal total expenses, and there is no profit or loss.

Budgeted Revenue

The amount of income that a company plans or expects to generate over a certain period, often used for planning and performance evaluation purposes.

After-Tax Profit

The net income a company generates after all taxes have been deducted from total revenues.