What Effect Do Stable and Dynamic Environments Have on Organizational

question 10

Essay

What effect do stable and dynamic environments have on organizational structure?

---

Definitions:

Investment Center

A business unit or segment whose manager has control over cost, revenue, and investments in assets, and is evaluated on profitability and return on investment.

Profit Center

A segment of a company that is directly responsible for generating its own revenue and profit, often evaluated independently for performance assessment.

Long-Term Liabilities

financial obligations of a company that are due more than one year in the future, including bonds payable, long-term lease obligations, and pension liabilities.

Service Department Charges

Expenses allocated to a company's operational departments that provide support or services to other internal departments rather than directly to customers.