As the Number of Employees Increases,the Organization Tends to Have

question 145

Multiple Choice

As the number of employees increases,the organization tends to have:

• A)more job specialization.
• B)more elaborate coordinating mechanisms.
• C)more standardization rather than just informal communication as a coordinating mechanism.
• D)more decentralization.
• E)all of these changes.

Understand the concept of relevant and irrelevant costs in decision-making.

Distinguish between avoidable and sunk costs.

Identify the role of variable and fixed costs in various decisions.

Recognize the importance of opportunity costs in decision-making.

---

Definitions:

Debt Financing

The practice of borrowing funds to finance the business operations or expansion, typically involving loans or issued bonds.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate them for the risk they undertake by investing their capital.

Financial Restructuring

The process of reorganizing a company's financial structure, typically in response to financial distress, to improve liquidity and stabilize the business.

Reorganization

The process of restructuring a company's business or financial arrangements, often in bankruptcy.