Conflict Can Occur as a Disadvantage of the Informal Structure

question 46

Multiple Choice

Conflict can occur as a disadvantage of the informal structure when:

• A) there is no change in the informal structure over time.
• B) there is resistance to change.
• C) the goals of customers and staff are different.
• D) the goals of the informal network are different from those of the formal organisation.

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Definitions:

Market Structure

The organizational and other characteristics of a market that influence the behavior of participants and the nature of competition.

Government Patents

Legal rights granted by the government to inventors for their inventions, giving them an exclusive right to use, make, and sell the invention for a certain period.

Imitation Problem

The challenge businesses face when competitors copy their products or services, potentially reducing the original company's profits and market share.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a utility equal to its cost of production.