Which of the Following Statements About Simple Organizational Structures Is

question 87

Multiple Choice

Which of the following statements about simple organizational structures is not true?

• A) Small firms with a narrow product-market scope will adopt such a structure.
• B) Decision making authority is highly centralized.
• C) There is little specialization of tasks.
• D) Creativity and individualism are rare.

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Definitions:

Employee Stock Option

A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.

Fixed Price

A pricing strategy where the cost of goods or services is set at a specific amount and does not fluctuate.

Buy Shares

The act of purchasing ownership interests in a company, thereby becoming a shareholder entitled to dividends and capital gains.

Lower Bound

The minimum value that a theoretical price, such as an option's price, can reach.