Organisations Tend to Form Two Clusters Based on Their Span

question 71

Multiple Choice

Organisations tend to form two clusters based on their span of control,centralisation and formalisation.The two clusters represented by these organisational design features are called:

• A) Hierarchical versus delayered
• B) Networked versus team-based
• C) Geographic versus product/client divisions
• D) Organic versus mechanistic

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Definitions:

External Costs

Costs of economic activities that affect third parties outside the transaction, which are not reflected in market prices.

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditures.

Negative Externality

Occurs when a decision by an individual or firm results in unwanted negative effects on another party not involved in the decision.

MSC (Marginal Social Cost)

The total cost to society of producing an additional unit of a good or service, including both private costs and any externalities.