In Loosely Coupled Organization Structures

question 30

Multiple Choice

In loosely coupled organization structures

• A) coordination is achieved through adherence to shared objectives and common standards.
• B) the possibility for achieving synergies is high.
• C) the firm reduces its chance of developing a product that has a price-to-value ratio that attracts customers.
• D) the overhead and administrative complexities of maintaining a wide scope of activities are increased.

---

Definitions:

Available-for-sale Securities

Financial assets not classified as held-to-maturity or trading securities, which can be sold in response to needs for liquidity or changes in interest rates, among other reasons.

Recorded

The act of documenting financial transactions in the accounting records.

Controlling Interest

Ownership of a sufficient portion of a company's stock to influence or control its activities and decisions.

Valuation Allowance Account

An account used to offset the value of deferred tax assets due to the likelihood that they will not be realized.