If a Firm Finds That Its Functional Structure Is Becoming

question 50

Multiple Choice

If a firm finds that its functional structure is becoming too awkward as the firm grows in size and complexity,the firm can turn to

• A) a simple structure.
• B) downsizing.
• C) reengineering.
• D) restructuring.
• E) outsourcing.

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Definitions:

Sales

The total amount of revenue generated by the sale of goods or services.

Unit Variable Cost

The variable cost incurred to produce one unit of a product, including materials, labor, and variable overhead.

Minimum Required Rate Of Return

This is the lowest return that investors expect for an investment, affecting the value and desirability of an investment opportunity.