The Greater the Level of Uncertainty in the Organization's Environment,the

question 102

Multiple Choice

The greater the level of uncertainty in the organization's environment,the:

• A) less likely managers are to design a structure and a culture that is innovative.
• B) less likely managers are to design a structure and a culture that changes quickly.
• C) more likely managers are to design an organizational structure that is formal and controlling.
• D) more likely managers are to design a structure and a culture that are flexible.
• E) more likely managers are to design an organizational culture that defines how employees should act in particular situations.

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Definitions:

Monetary Items

Financial assets and liabilities that carry a fixed monetary value, such as cash, receivables, and payables.

Foreign Currency

Currency used in a country other than one’s own, requiring exchange rate conversion for transactions and financial reporting.

Closing Rate

The exchange rate used to convert foreign currency transactions and balances into the reporting currency of a company at the end of an accounting period.

Historical Rate

The exchange rate at which a foreign currency transaction was converted into the reporting currency at the time of the transaction.