Organizational Architecture Varies from Firm to Firm

question 4

Multiple Choice

Organizational architecture varies from firm to firm. The three big external (exogenous) determinants of a firm's administrative structure are:

• A) decision rights, rewards, and technology.
• B) government regulation, technology and decision rights.
• C) government regulation, technology and markets.
• D) decision rights, rewards, evaluation systems.

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Definitions:

Unearned Rent

Income received by a landlord for rent that has been paid in advance, but which covers a period that has not yet occurred, and is recorded as a liability.

Net Income

The total profit of a company after all expenses are deducted from revenues, also known as the bottom line.

Understated

Described or represented as less than is actually the case; downplayed in expression or estimation.

Systematic Allocation

The process of distributing an expense or income in a methodical way over a certain period or among various accounts.