Which of the Following Activities, If Any, Represents an External

question 236

Multiple Choice

Which of the following activities, if any, represents an external benefit?

• A)​The benefit to a consumer from watching a film on DVD.
• B)​The reduction in air quality resulting from industrial development in an urban area.
• C)​The increase in the value of property belonging to your neighbors when you hire a landscaper to beautify your front yard.
• D)​The reduction in property values when a new airport is built in a neighborhood.

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Definitions:

Mechanistic Organizational Structure

An organization design that is hierarchical and bureaucratic, characterized by clear, rigid departmentalization, centralized decision making, and a strict chain of command.

Divisionalized Structure

An organizational form where operations are segregated based on products, markets, or geography, allowing for a degree of autonomy and specialization.

Formal Hierarchy

A structured organization where individuals have specific positions, responsibilities, and levels of authority delineated in a clear manner.

Coordinating Mechanism

Methods or systems used within organizations to align activities, tasks, and personnel to achieve common objectives seamlessly and efficiently.