A Mechanistic Organizational Structure Works Better Than an Organic Structure

question 158

Multiple Choice

A mechanistic organizational structure works better than an organic structure when:

• A)the organization operates in a hostile environment.
• B)the organization adopts a differentiation strategy.
• C)the organization requires a high degree of formalization.
• D)the organization adopts a low-cost strategy.
• E)the organization operates in a dynamic environment.

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Definitions:

Accounts Payable

Amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Inventory

Refers to the goods and materials that a business holds for the ultimate goal of resale.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a relatively safe investment.