Organizational Structure Means All of the Following, EXCEPT

question 66

Multiple Choice

Organizational structure means all of the following, EXCEPT:

• A) the establishment of integrating mechanisms to coordinate the activities of subunits.
• B) the location of decision-making responsibilities with a structure.
• C) the manner in which decisions are made and work is performed by individuals.
• D) the formal division of the organization into subunits such as product divisions and functions.

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Definitions:

Economies of Scope

Cost advantages that a business achieves by providing a variety of products rather than specializing in a single product or service.

Economies of Scope

Cost advantages that enterprises obtain through the diversification of production, by producing multiple products using the same operations or inputs.

Diversification Strategies

Business approaches to entering new markets or industries to reduce reliance on a single market or product line.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.