Suppose a New Cost-Saving Device Will Generate $1,000 Net Savings

question 56

Multiple Choice

Suppose a new cost-saving device will generate $1,000 net savings per year to a firm.The device costs $10,000.Should the firm purchase the device?

• A) Definitely.
• B) Absolutely not.
• C) The firm is indifferent between buying the device and not.
• D) More information is required to answer.

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Definitions:

Organic

Referring to or derived from living matter; in business, it describes growth or processes that occur in a natural, gradual, and continuous manner.

Theorists

Individuals who formulate theories or concepts in a particular field of study or aspect of human behavior.

Organic Structures

Organic structures refer to flexible, adaptive organizational structures that are characterized by low levels of formalization, decentralized decision-making, and a broad scope of control.

Mechanistic

Pertains to organizational structures that are highly formalized and centralized, with strict hierarchies and clear, rigid procedures.