The Primary Source of Environmental Diversity or Uncertainty Mainly Determines

question 19

True/False

The primary source of environmental diversity or uncertainty mainly determines the best form of divisional structure an organization should adopt.

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Definitions:

Informal Organization

The network of personal and social relationships that spontaneously form within an organization outside of its formal structure.

Corporate Form

A legal structure chosen for businesses that treats the company as a separate entity from its owners, providing limited liability and other legal protections.

Transferability of Shares

Refers to the ability of shareholders to sell or transfer their shares to another party, subject to the rules of the corporation and securities laws.

Ultra Vires

Acts performed by a corporation that are beyond the scope of its charter or legal authority.